Keyera Corp. has successfully finalized the acquisition of the Canadian natural gas liquids division of Plains All American Pipeline L.P., despite facing opposition from the federal competition watchdog. The transaction, valued at $5.3 billion with closing adjustments, was completed on Tuesday.
The Competition Bureau has raised concerns about the deal’s potential negative impact on energy producers and investment opportunities, prompting them to seek intervention from the Competition Tribunal. The focal point of contention lies in the competition dynamics at the primary natural gas liquids processing center in Fort Saskatchewan, Alberta, situated northeast of Edmonton.
Keyera has expressed disagreement with the regulator’s claims and portrayal of the acquisition, vowing to address the issue through the Competition Tribunal procedures. The company maintains its confidence in the deal’s ability to enhance competition in the region by establishing a more effective Canadian competitor with broader connectivity and market access capabilities.
