Enbridge Spectra Takeover

Enbridge Inc (NYSE: ENB) announced on August 24 its plans to purchase all outstanding shares of Spectra Energy Partners LP (NYSE: SEP) in a transaction valued at $2.8b. This deal will give Spectra investors 1.11 shares of Enbridge stock for every share of Spectra that they own. This latest deal comes after a previous offer which did not include a premium for Spectra unitholders. Jefferies LLC served as financial adviser to Spectra with Scotiabank and Bank of America Merrill Lynch acting as financial advisers to Enbridge. Covington & Burling acted as legal adviser for this arrangement. The agreement is expected to close by the fourth quarter of 2018. This acquisition is part of EnbridgeÕs plan to simplify its corporate structure as MLP capital markets in the United States continue to weaken. Enbridge released a press release stating that the SEP acquisition is necessary in order for SEP to avoid having to transition to a self-funding model.

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