MOSCOW (MRC) -- Brookfield Infrastructure Partners’ fourth offer for Inter Pipeline Ltd. has convinced the embattled pipeline company to abandon a friendly deal with rival Pembina Pipeline Corp. in favour of the Toronto-based asset manager, said Reuters.
IPL’s move comes after Brookfield Infrastructure Partners earlier this month raised its hostile bid for IPL, and as two shareholder advisory firms advised IPL shareholders against the merger deal with Pembina. Instead of pursuing the merger with Pembina, IPL will now engage with Brookfield “to reach a mutually agreeable transaction”, it said in a filing late on Monday.
Pembina confirmed the termination of the deal with IPL, saying that it would continue to seek other opportunities for growth through focused acquisitions. Pembina CEO Mick Dilger added that “the industrial logic” of combining Pembina and IPL “remains unparalleled and the value creation between certain of our assets is impossible to replicate by any other entity."
IPL has a propane dehydrogenation/polypropylene (PDH/PP) production complex in Alberta province that is due to start up next year. A combination with IPL could have created synergies enabling a second PDH/PP project in Alberta, officials had previously said.
As per MRC, Canadian midstream energy companies Pembina Pipeline and Inter Pipeline (IPL) are mulling the prospects of dehydrogenation/polypropylene (PDH/PP) production in Alberta province. On May 31, 2021, Pembina and Inter Pipeline entered into an agreement to create one of the largest and best positioned energy infrastructure companies in Canada. Together the companies' diversified and integrated asset base can support and grow an extensive value chain for natural gas, natural gas liquids and crude oil, from wellhead to end user, that far exceeds anything either company can do separately.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
Inter Pipeline Ltd is a multinational oil transportation and infrastructure limited company that ranks among North America's leading natural gas production and processing companies. It is one of the top 100 companies in Alberta in terms of earnings and assets.
Pembina Pipeline has been a gas supplier to the North American power system for over 60 years. Pembina owns and operates pipelines that transport a variety of hydrocarbon fluids, including conventional and synthetic crude oil and others, produced in Western Canada and North Dakota.