Keyera Corp. has successfully finalized the purchase of Plains All American Pipeline L.P.’s Canadian natural gas liquids business, sealing the deal for $5.3 billion after adjustments. Despite facing opposition from the federal Competition Bureau, the acquisition was completed on Tuesday.
The Competition Bureau has raised concerns about the potential negative impact of the deal on energy producers and investment opportunities. The regulatory body has taken the matter to the Competition Tribunal, emphasizing the importance of maintaining competition in the natural gas liquids processing hub located in Fort Saskatchewan, Alberta.
In response to the Bureau’s objections, Keyera has expressed disagreement with the allegations and description of the transaction. The company plans to address these concerns through the Competition Tribunal process, emphasizing its belief that the acquisition will enhance competition in the region. Keyera asserts that the deal will establish a more efficient Canadian competitor with improved connectivity and market access capabilities.
The Competition Bureau’s challenge to the proposed merger in the natural gas sector, particularly in Fort Saskatchewan, aims to prevent any potential negative impacts on market competition. Keyera’s acquisition of Plains All American Pipeline is seen as a move that could influence competition dynamics in the industry.