Keyera Corp. has finalized its acquisition of the Canadian natural gas liquids division of Plains All American Pipeline L.P., valued at $5.3 billion with adjustments made during the closing process. Despite facing opposition from the federal competition regulator, the company successfully concluded the transaction.
The Competition Bureau has raised concerns about the deal’s potential adverse effects on energy producers and investment prospects, prompting the regulator to seek intervention from the Competition Tribunal. The focal point of contention revolves around competition dynamics at the primary natural gas liquids processing center in Fort Saskatchewan, Alberta, located to the northeast of Edmonton.
In response to the regulator’s objections, Keyera has expressed disagreement with the allegations and portrayal of the transaction. The company has affirmed its commitment to engaging in the Competition Tribunal process to address the regulatory concerns. Keyera remains optimistic about the acquisition’s positive impact on competition in the region, emphasizing the creation of a more efficient Canadian competitor with enhanced connectivity and market access capabilities.
The Competition Bureau’s challenge to the proposed merger in the natural gas sector, particularly concerning Keyera Corp.’s acquisition of Plains All American Pipeline, is driven by fears of market competition repercussions. Emily Fitzpatrick provides more insights into the implications of this regulatory dispute.
