Keyera Corp. has successfully finalized the purchase of Plains All American Pipeline L.P.’s Canadian natural gas liquids business, overcoming opposition from the federal Competition Bureau. The acquisition was completed on Tuesday for $5.3 billion, inclusive of closing adjustments.
The Competition Bureau has raised concerns about the potential negative impact on energy producers and investment due to the deal and has sought intervention from the Competition Tribunal. The focal point of contention is the competition dynamics at the main natural gas liquids processing center in Fort Saskatchewan, Alberta.
Keyera has expressed disagreement with the regulator’s claims and the portrayal of the transaction. The company plans to address these concerns through the Competition Tribunal process. Keyera asserts that the acquisition will enhance competition in the region by establishing a more efficient Canadian competitor with improved connectivity and market access.
The Competition Bureau’s challenge to the proposed merger in the natural gas sector, particularly in Fort Saskatchewan, highlights the potential repercussions on market competition. The bureau contends that Keyera Corp.’s acquisition of Plains All American Pipeline could have detrimental effects.