Keyera Corp. has successfully finalized the purchase of Plains All American Pipeline L.P.’s Canadian natural gas liquids business, despite facing opposition from the federal competition watchdog. The acquisition, valued at $5.3 billion, was officially completed on Tuesday, inclusive of closing adjustments.
The Competition Bureau has taken legal action by applying to the Competition Tribunal to challenge the transaction, citing concerns about potential adverse effects on energy producers and investment prospects. The primary contention revolves around competition in Fort Saskatchewan, Alberta, a crucial natural gas liquids processing hub situated northeast of Edmonton.
Keyera has expressed disagreement with the regulator’s allegations and portrayal of the deal and has committed to addressing the concerns through the Competition Tribunal process. The company maintains its confidence in the acquisition, emphasizing that it will enhance competition in the region by establishing a more efficient Canadian competitor with broader connectivity and market access capabilities.