Keyera Corp. has successfully finalized the purchase of Plains All American Pipeline L.P.’s Canadian natural gas liquids business, despite facing opposition from the federal competition regulator. The acquisition, completed on Tuesday for $5.3 billion with closing adjustments, has drawn scrutiny from the Competition Bureau, which has taken the matter to the Competition Tribunal, citing concerns about potential negative impacts on energy producers and investment in the sector.
The focal point of the dispute revolves around competition within the primary natural gas liquids processing hub in Fort Saskatchewan, Alberta, situated northeast of Edmonton. Keyera has expressed its disagreement with the regulator’s position on the transaction and plans to address the issue through the Competition Tribunal procedures. The company maintains its confidence in the deal, asserting that it will enhance competition in the region by establishing a more efficient Canadian-based player with increased connectivity and market access capabilities.
The Competition Bureau’s contention is that the proposed merger between Keyera Corp. and Plains All American Pipeline could have adverse effects on market competition within the natural gas sector, particularly in Fort Saskatchewan. Emily Fitzpatrick provides further insight into the Bureau’s concerns and the potential implications of the deal on market competition.