Pembina Pipeline Corporation and Kinder Morgan Canada Limited (KML) have received a “no-action letter” from the Canadian Competition Bureau for the proposed acquisition by Pembina of Kinder Morgan Canada’s outstanding common equity.
Pembina announced in August that it would buy KML and the U.S. portion of the Cochin pipeline system, offering shares worth $2.3 billion along with $2.05 billion in cash for the assets.
Along with the 110,000-barrel-a-day Cochin pipeline, which runs from Fort Saskatchewan, Alta. to Chicago, the deal also includes an Edmonton storage and terminal business and Vancouver Wharves, a bulk storage and export-import business.
The receipt of the “no-action letter” satisfies the last material regulatory condition necessary for completion of the Arrangement. The Arrangement is now expected to close in December 2019, subject to approval,