Keyera Corp. successfully finalized the purchase of Plains All American Pipeline L.P.’s Canadian natural gas liquids business, overcoming a challenge from the federal competition authority. The acquisition, valued at $5.3 billion with adjustments, was completed on Tuesday.
The Competition Bureau has taken legal action before the Competition Tribunal to contest the transaction, claiming potential negative impacts on energy producers and investment. The primary concern revolves around competition in Fort Saskatchewan, Alberta, a key natural gas liquids processing hub in Canada.
Despite the regulator’s objections, Keyera maintains its disagreement with the allegations and plans to address the matter through the Competition Tribunal procedures. The company expresses confidence that the acquisition will enhance competition in the region by establishing a more efficient Canadian competitor with improved connectivity and market access.
The Competition Bureau’s contention that the deal could harm energy producers was highlighted through a media presentation. The regulator raised concerns that Keyera Corp.’s acquisition of Plains All American Pipeline would have adverse effects on market competition in Fort Saskatchewan.