Keyera Corp. has finalized the acquisition of Plains All American Pipeline L.P.’s Canadian natural gas liquids business, sealing the deal for $5.3 billion, including closing adjustments. The Competition Bureau has raised concerns about the acquisition, filing a challenge with the Competition Tribunal, citing potential negative impacts on energy producers and investment opportunities.
The focal point of the dispute lies in the competition within Fort Saskatchewan, Alberta, a primary natural gas liquids processing hub in Canada. Keyera has expressed disagreement with the Competition Bureau’s claims and the way they have characterized the transaction. The company plans to address these concerns through the Competition Tribunal process, maintaining confidence that the acquisition will enhance competition in the region. Keyera believes that the deal will establish a more efficient Canadian competitor with improved connectivity and market access capabilities.
The Competition Bureau’s challenge to the proposed merger in the natural gas sector, particularly in Fort Saskatchewan, is based on their assertion that Keyera Corp.’s acquisition of Plains All American Pipeline could have adverse effects on market competition.