Enbridge Inc. announced on Thursday that it will sell its pipeline assets in the the Canadian provinces Saskatchewan and Manitoba to Tundra Energy Marketing Limited for C$1.08 billion (US$820 million). The transaction does not include the company’s share of the Bakken Expansion Pipeline.
Enbridge, which just purchased Spectra Energy to create the largest pipeline operator in North America, is selling its non-core assets to assist in funding its growth program, according to Enbridge CFO Officer John Whelen.
"In conjunction with the proposed Spectra Energy merger, we announced our intention to divest of approximately $2 billion of non-core assets over the next year to further strengthen Enbridge Inc.'s consolidated balance sheet and provide for additional financing flexibility," said Whelen in a statement.
The transaction is expected to close by the end of this year.
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