M&As this week: TransCanada, INEOS, WGL Midstream
TransCanada has reached an agreement to acquire the remaining 53.5% stake of Columbia Pipeline Partners (CPPL) for $915.34m, through its wholly owned subsidiary Columbia Pipeline Group.
CPPL’s assets include approximately 15,000mi (24,140km) of interstate pipelines, underground natural gas storage systems, and associated gathering and processing systems.
TransCanada has retained Morgan Stanley and Vinson & Elkins as financial and legal advisors for the transaction, respectively.
The transaction will enable TransCanada to own 100% stake in CPPL and allow the company to expand its midstream operations.
INEOS Styrolution Group has agreed to acquire 100% interest in K R Copolymer (KRCC) from Chevron Phillips Chemical Company and Daelim Industrial.
KRCC owns and operates a K-Resin styrene-butadiene copolymers (SBC) plant in Yeosu Petrochemical Complex, South Korea. The company is currently owned by Chevron Phillips (50%) and Daelim (50%).
The acquisition will allow INEOS to expand its global styrenic specialties business and SBC product portfolio.
WGL Midstream, a subsidiary of WGL Holdings, has completed the acquisition of an additional 3% stake in Mountain Valley Pipeline (MVP) from Vega Energy Partners.
MVP is currently constructing a 300mi (483km)-long Mountain Valley pipeline, which will offer a minimum firm transmission capacity of two billion cubic feet a day (bcfd).
Upon completion of the transaction, MVP will be owned by WGL (10%), EQT Midstream Partners, LP (55%, operator) and NextEra Energy (35%).
Team Oil Tools, Antelope Oil Tool & Manufacturing and Isolation Technologies have merged to create a new entity known as Innovex Downhole Solutions.
Innovex offers downhole tools and technologies for the oil and gas industry worldwide.
The merger allows the three companies to expand their operations in North America, Europe and the Middle East regions.
Tamarack Valley Energy has agreed upon a $304m acquisition of Spur Resources. The purchase consideration also includes the assumption of the latter’s $19.18m of net debt and will be funded through a combination of cash and equity.
Spur Resources owns 300,000 net acres in south-east Alberta and south-west Saskatchewan, as well as associated assets, including 750km-long oil and gas pipelines, multiple owned batteries, compressors and booster compressors, and a 34.2% working interest in the Consort gas plant.
Tamarack has retained Peters & Co as the financial advisor, and CIBC World Markets and Macquarie Capital Markets Canada as strategic advisors for the transaction, which is scheduled for completion on or before 11 January 2017.