Kinder Morgan Cashes Out of Canada
Kinder Morgan (NYSE: KMI) will be exiting Canada after all. The North American energy infrastructure giant was considering several alternatives for its majority-owned Canadian subsidiary Kinder Morgan Canada (TSX: KML) earlier this year, including an outright sale or merger. But it chose to keep that entity independent after it didn't find any attractive offers.
That changed this week as the company agreed to merge Kinder Morgan Canada with Pembina Pipeline (NYSE: PBA) in a deal worth 2.3 billion Canadian dollars ($1.7 billion), which includes the assumption of debt and preferred stock. In addition, Kinder Morgan will sell the U.S. section of a cross-border pipeline to Pembina for another $1.55 billion. Those transactions will not only hasten Kinder Morgan's exit from Canada but also provide it with a lot more financial flexibility.
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Source Fool.com
