The combination will create North America's largest energy infrastructure company and boast revenue of $31 billion. Fred Katayama reports.
A mega merger in the North American energy business. Canada's largest pipeline company, Enbridge, is buying Houston-based natural gas infrastructure giant Spectra Energy. It's paying $28 billion in stock. That's an 11.5 percent premium based on what Spectra's shares were worth on Friday. The combination will create North America's largest energy infrastructure company that'll range from pipelines and terminals to crude oil, liquids and natural gas. It'll boast revenue of $31 billion. Enbrdige CEO Al Monaco said he sought to diversify the company's assets and get new sources of growth through the deal. He will run the combined company that will take on the Enbridge name. Spectra's shares shot higher in early trading, adding to its 51 percent rally this year. Shares of Enbridge also rose.