8-K

ENBRIDGE INC 8-K Report (Feb 16, 2017)

Filed February 16, 2017For Securities:ENBENBMFEBBGFEBRGFEBRZFENBGFENBRFENFFFEBGEFENBFFENBHFENBNFENBOFENBSFEBBNFENNPF

Summary

Enbridge Inc. (ENB) and Spectra Energy Corp (SE) announced on February 16, 2017, that they have received clearance from the U.S. Federal Trade Commission (FTC) for their proposed combination. This marks a significant step towards completing the merger, with only the Canadian Competition Act clearance remaining. The FTC's approval includes a consent decree that will implement information firewalls and limit Enbridge's potential influence over the Discovery offshore Gulf of Mexico natural gas pipeline system. This measure addresses potential competitive concerns arising from Enbridge's existing operations in the same region through an affiliate. The companies continue to anticipate closing the transaction in the first quarter of 2017.

Key Highlights

  • 1FTC clearance obtained for the proposed Enbridge and Spectra Energy combination.
  • 2The transaction now only requires approval under the Canadian Competition Act.
  • 3A consent decree was accepted by the FTC, establishing information firewalls and limiting Enbridge's influence on the Discovery offshore Gulf of Mexico pipeline system.
  • 4This addresses potential competitive overlap in the Gulf of Mexico natural gas market.
  • 5Enbridge and Spectra Energy expect the transaction to close in the first quarter of 2017.

Frequently Asked Questions

The main news is that Enbridge Inc. has received clearance from the U.S. Federal Trade Commission (FTC) for its proposed combination with Spectra Energy Corp. This is a major regulatory hurdle cleared for the transaction.

Yes, the FTC clearance includes a consent decree. This decree will implement information firewalls and limit Enbridge's potential influence over the Discovery offshore Gulf of Mexico natural gas pipeline system, due to existing operations of both companies in that area.

The only remaining regulatory approval required is clearance under the Canadian Competition Act. All other significant approvals appear to have been obtained.

Enbridge and Spectra Energy continue to expect the transaction to close in the first quarter of 2017.