Brookfield Seeks to Break Up $6.9B Pembina-Inter Deal

Brookfield Infrastructure Partners raised its hostile offer for Inter Pipeline to CA$8.4 billion (US$6.9 billion) as it sought break up the company’s deal with Pembina Pipeline, setting off a full-blown takeover battle for Canada’s fourth-largest pipeline company.

Brookfield Infrastructure stated on Wednesday, June 2, it will make a cash-and-stock offer valued at CA$19.75 per share, representing a 4.4% premium to Pembina’s all-stock proposal, and take it directly to Inter’s investors. The offer, which is nearly three-quarters cash, came a day after Pembina made an all-stock offer that’s currently worth about CA$19.25 a share.

Brookfield’s new bid for Inter represents the latest twist in a nearly four-month saga for control of the Canadian midstream company that owns pipeline infrastructure across Western Canada, connecting the region’s oil sands and natural gas producers with domestic and foreign customers. In February, Brookfield made a CA$7.1 billion offer to buy all of Inter’s outstanding shares, but was spurned by the board, which set up a team to review options.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.