Status-Quo For Union Gas After Enbridge Purchase
Union Gas officials don’t expect any immediate changes with the utility’s parent company being bought by Enbridge Inc.
Tuesday morning the Calgary-based power company announced plans to buy Spectra Energy in a deal worth $37-billion. Combined with Houston-based Spectra, the new Enbridge Inc. will have a total enterprise value of $165-billion.
Spectra is the parent company of Union Gas, whose head office is located in Chatham. Spokesperson Andrea Stass says there are currently no plans to restructure or rebrand the company.
“After the transaction closes, Enbridge Inc. and Union Gas will continue to operate as separate companies,” says Stass. “That means Union Gas customers will continue to experience the same service they expect from us.”
Stass adds the move actually helps join Union Gas with a strong base of operations in Enbridge.
“There’s a good match with the assets that we have, there are very little redundancies,” adds Stass. “This unified company will be one of the most diversified in North America.”
Enbridge officials say their gas distribution will continue to be based in Ontario. The deal is set to go through in early January 2017, pending regulator and shareholder approval.