Keyera Corp. has successfully finalized its acquisition of the Canadian natural gas liquids business from Plains All American Pipeline L.P., despite facing opposition from the federal competition watchdog. The transaction, valued at $5.3 billion with closing adjustments, was completed by Keyera on Tuesday.
The Competition Bureau has raised concerns about the deal and has taken the matter to the Competition Tribunal, arguing that it could have negative effects on energy producers and investment opportunities. The focal point of contention is centered around competition at the primary natural gas liquids processing hub in Fort Saskatchewan, Alberta, located to the northeast of Edmonton.
Keyera has expressed its disagreement with the regulator’s allegations and description of the deal. The company has stated its intention to address these concerns through the Competition Tribunal process. Keyera remains confident that the acquisition will enhance competition in the region by establishing a more effective Canadian competitor with improved connectivity and market access capabilities.