Enbridge to buy Spectra Energy for $37 billion

Alberta-based Enbridge Inc. has finalized an agreement to purchase Spectra Energy Corp in a deal worth $37 billion.

The transaction will create North America’s biggest energy infrastructure company.

The value of the combined entity is pegged at $165 billion.

The Globe and Mail reports the head office will be located in Calgary and current Enbridge president and chief executive officer Al Monaco will become the president and CEO of the new company.

In a release, Enbridge said it will use each company's "complementary and diversified asset base to increase customer service offerings.” It added that the acquisition will enhance its ability to pursue new projects, strengthen its balance sheet and provide an industry-leading return on investment.

The deal was announced in a Tuesday morning conference call to Spectra shareholders. Enbridge shareholders will own 57% of the new company. Spectra shareholders will retain 43%. Combined revenue of the two is estimated at $40 billion, with earnings before interest and taxes of $5.8 billion.

Spectra has several pipelines and properties in Northeast B.C., including the Pine River Gas plant, which has been closed since flooding struck the region in June. At the time of the shut down, it was producing 245 million cubic feet per day of natural gas.