TransCanada Acquiring Texas Based Columbia Pipeline Group Inc in a $10.2 Billion Deal
Expanding its reach further into the U. S. natural gas market, TransCanada Corp. is buying Houston, Texas based, Columbia Pipeline Group Inc. in a $10.2 billion deal.
The Calgary based energy company will fund the deal with proceeds from its asset sales and an offering of new shares worth $3.2 billion.
TransCanada will pay $25.50 per share to Columbia's share holders which represent a 10.9 percent premium on Columbia Pipeline Group Inc's closing price as on March 16. The company will also assume approximately $2.8 billion of debt according to a company statement issued on Thursday.
After the completion of the deal, TransCanada will get over 15,000 miles of natural gas pipelines along with processing and underground storage facilities that Columbia owned. It will add give TransCanada a stronger presence in the Marcellus and Utica shale regions.
TransCanada's president and chief executive officer, Russ Girling said, "The acquisition represents a rare opportunity to invest in an extensive, competitively-positioned, growing network of regulated natural gas pipeline and storage assets in the Marcellus and Utica shale gas regions."
Headquarters in Calgary, Alberta, TransCanada was focusing more on expanding its expansion oil transportation division of its business till last year.