Pembina signs deal to purchase Inter Pipeline Ltd.

Pembina site off Highway 40 in the Corunna area. Image courtesy of Google Maps

A Calgary based company with an integrated system of pipelines that transport crude oil, natural gas and natural gas liquids to Sarnia-Lambton is working to grow.

Pembina Pipeline Corp. has signed a deal to buy Inter Pipeline Ltd. for $8.3 billion in stock.

Under the deal, Inter Pipeline shareholders will receive half a Pembina share for each share of Inter Pipeline that they own.

The offer is valued at $19.45 per Inter Pipeline share based on the closing price of Pembina shares on Monday. Inter Pipeline shares closed at $17.55.

The deal was unanimously approved by the boards of both companies, but also requires approval by a majority of Inter Pipeline and Pembina shareholders.

In addition to its pipeline system, Pembina also has gas gathering and processing facilities, and an oil and natural gas liquids infrastructure and logistics business.

Pembina has offices at First Sarnia Place on Front Street, and owns a storage terminal for propane, butane and natural gas off Highway 40 in the Corunna area.