Pipeline operator Enbridge to buy Spectra Energy for $28B

NEW YORK – Canada’s Enbridge is buying Houston-based Spectra Energy for about $28 billion, creating North America’s largest energy infrastructure company.

Both companies operate pipelines that deliver oil and natural gas.

Under the terms of the deal, Spectra Energy shareholders will receive 0.984 a share of the combined company, or about $40.33, for each Spectra Energy share they own. When the deal closes, which is expected to happen in the in the first quarter of 2017, Enbridge shareholders will own about 57 per cent of the combined company and Spectra Energy shareholders will own about 43 per cent.

Enbridge shares fell 1.8 per cent to $40.25 before the stock market opened Tuesday. Shares of Spectra Energy Corp. rose 9.3 per cent to $39.50.