Canada’s Pembina abandons Inter Pipeline bid
Canadian pipeline and infrastructure company Pembina Pipeline said July 26 it would abandon its C$8.3bn (US$6.6bn) bid for Inter Pipeline.
Under the terms of Pembina’s bid, Inter has agreed to pay a break fee of C$350mn, and is open to working with Brookfield Infrastructure Partners, which sweetened its competing bid for Inter earlier this month to C$8.58bn from C$8.48bn.
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“The industrial logic of a combined Pembina and Inter Pipeline remains unparalleled and the value creation between certain of our assets is impossible to replicate by any other entity,” Pembina CEO Mike Dilger said. “While we are disappointed with this outcome, we will continue to seek opportunities for growth through focused acquisitions.”
Last week, two proxy advisory services recommended Inter shareholders accept Brookfield’s bid over Pembina’s, and media reports suggested Inter’s board had advised that it could no longer support Pembina’s bid over Brookfield’s revised offer.