Keyera Corp. has successfully completed its acquisition of the Canadian natural gas liquids business from Plains All American Pipeline L.P., overcoming a challenge from the federal competition regulator. The deal, valued at $5.3 billion including closing adjustments, was finalized on Tuesday.
The Competition Bureau raised concerns about the acquisition, alleging that it could have negative implications for energy producers and investment opportunities. The focus of the dispute lies in the competition within Fort Saskatchewan, Alberta, a key natural gas liquids processing hub in Canada.
Keyera has expressed disagreement with the regulator’s claims and how the transaction has been portrayed, vowing to address these concerns through the Competition Tribunal. The company maintains 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 specifically targets the impact on competition in Fort Saskatchewan. According to the Bureau, Keyera Corp.’s acquisition of Plains All American Pipeline could potentially harm market competition.
