Pembina Pipeline Corporation Receives Canadian Competition Bureau Approval for the Proposed Acquisition of Enbridge’s Interest in Alliance/Aux Sable

Rhea-AI Summary

Pembina Pipeline (PBA) receives 'no-action letter' from Canadian Competition Bureau for the acquisition of Enbridge's interest in joint ventures, expected to complete on April 1, 2024.

Insights

Financial Analyst

The receipt of a 'no-action letter' from the Canadian Competition Bureau for Pembina Pipeline Corporation's acquisition of Enbridge’s interests in multiple joint ventures signifies a pivotal moment for the company and its investors. This clearance removes a significant hurdle in the merger and acquisition process, potentially leading to a substantial change in Pembina's market position and future earnings potential. The transaction's completion could result in increased market share and operational synergies, which are likely to be reflected in Pembina's stock performance.

Investors should monitor the integration process closely, as the success of such acquisitions is not only in closing the deal but also in the efficient merging of assets and operations. The potential for cost savings and revenue enhancement is there, but so is the risk of integration challenges that could affect the expected value creation. It's important to consider the track record of Pembina's management in executing past acquisitions when evaluating the potential success of this transaction.

Energy Sector Analyst

The strategic acquisition of Enbridge's interests in the Alliance, Aux Sable and NRGreen joint ventures by Pembina may have a significant impact on the energy sector landscape. The Alliance Pipeline, being a major natural gas conduit between Western Canada and the U.S. Midwest, is a critical piece of infrastructure likely to enhance Pembina's asset base and offer greater control over gas transportation routes. The Aux Sable facility is one of the largest natural gas liquids (NGL) extraction and fractionation facilities, which could provide Pembina with a competitive edge in NGL processing.

Furthermore, the inclusion of NRGreen, which specializes in converting waste heat to power, aligns with the growing trend towards energy efficiency and could offer Pembina an entry point into the renewable energy market. The transaction could therefore not only increase Pembina's operational footprint but also diversify its business model, which is important in the context of the global energy transition.

CALGARY, Alberta--(BUSINESS WIRE)-- Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) is pleased to announce that it has received a "no-action letter" from the Canadian Competition Bureau confirming that the Commissioner of Competition does not intend to challenge the proposed acquisition by Pembina of Enbridge’s interest in the Alliance, Aux Sable, and NRGreen joint ventures (the "Transaction"). The receipt of the "no-action letter" satisfies the last material regulatory condition necessary for completion of the Transaction, which is expected to occur on April 1, 2024.

About Pembina

Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America's energy industry for 70 years. Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, please visit www.pembina.com.

Purpose of Pembina: We deliver extraordinary energy solutions so the world can thrive.

Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division.

Pembina's common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit www.pembina.com.

Forward-Looking Information and Statements

This news release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements"), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legislation, that are based on Pembina’s current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as "continue", "anticipate", "will", "expects", "estimate", "potential", "future", "outlook", "strategy", "maintain", "ongoing", "believe" and similar expressions suggesting future events or future performance.

In particular, this news release contains forward-looking statements regarding, without limitation, the Transaction, including the expected closing date thereof.

The forward-looking statements are based on certain assumptions that Pembina has made in respect thereof as at the date of this news release regarding, among other things: the ability of the parties to satisfy the conditions to closing of the Transaction in a timely manner.

Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct.

These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties, which may cause actual results to differ materially from the results expressed or implied, including, but not limited to: the ability of the parties to satisfy, in a timely manner, the conditions to the closing of the Transaction; and certain other risks detailed from time to time in Pembina's public disclosure documents available at www.sedarplus.ca, www.sec.gov and through Pembina’s website at www.pembina.com.

This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause actual results to differ materially from those predicted, forecasted or projected. The forward-looking statements contained in this news release speak only as of the date hereof. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240319734451/en/

Investor Relations

(403) 231-3156

1-855-880-7404

e-mail: investor-relations@pembina.com

www.pembina.com

Source: Pembina Pipeline Corporation

FAQ

When is Pembina Pipeline (PBA) expected to complete the acquisition of Enbridge's interest in joint ventures?

The acquisition is expected to be completed on April 1, 2024.

What regulatory condition did Pembina Pipeline (PBA) satisfy for the completion of the acquisition?

Pembina satisfied the last material regulatory condition by receiving a 'no-action letter' from the Canadian Competition Bureau.

Which joint ventures are involved in the acquisition by Pembina Pipeline (PBA) from Enbridge?

The joint ventures involved in the acquisition are Alliance, Aux Sable, and NRGreen.