Enbridge to buy Tallgrass crude business for US$2.6 billion

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeCommoditiesEnergyEnbridge to buy Tallgrass crude business for US$2.6 billionThe deal is a test of whether the tariff war will bleed into the sleepier corners of the M&A marketEnbridge shares fell as much as 2.6 per cent after the deal was announced. Photo by BRUNSWICK NEWS ARCHIVESEnbridge Inc., the Canadian energy infrastructure giant, reached an agreement to buy Tallgrass Energy’s crude oil business from Blackstone Inc. for about US$2.6 billion.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe deal includes 75 per cent of the Pony Express Pipeline, 51 per cent of the Powder River Gateway system and 8.4 million barrels of storage capacity, according to a statement Wednesday.Bloomberg reported earlier that Enbridge was in advanced talks to buy the pipeline. Enbridge shares fell as much as 2.6 per cent after the deal was announced.The deal, expected to close later in 2026, is a test of whether the tariff war between the U.S. and Canada will bleed into one of the sleepier corners of the M&A market: energy pipelines. The Pony Express carries crude oil about 900 miles from oil fields in the Rocky Mountain region to Cushing, Oklahoma, one of the busiest pipeline hubs in the world.It is the second largest Canada-to-U.S. M&A deal this year, and the biggest since trade talks collapsed between the two countries in August, according to data compiled by Bloomberg.While it’s not clear how the deal will be viewed in Washington, U.S. President Donald Trump has taken a keen interest in oil pipelines in the past. He signed a presidential permit in April authorizing the expansion of the Bridger pipeline to carry Canadian oil to Wyoming. That project is a partial revival of the Keystone XL Pipeline, which the president sought to revive during his first term.While Enbridge is based in Calgary, it has a massive presence in the U.S., with a pipeline network that carries oil from Western Canada and U.S. natural gas supplies to utilities, refineries and liquefied natural gas export terminals across the continent. At the time of its US$28 billion purchase of Spectra Energy in 2017, Enbridge became the largest energy pipeline and storage company in North America.The Powder River Gateway system moves crude from the Powder River Basin to a pipeline hub at Guernsey, Wyoming. Enbridge is also buying Stanchion Energy, a crude marketing business, through the deal.Blackstone Infrastructure Partners LP took Tallgrass Energy private in 2020.Citigroup Inc. was Enbridge’s financial advisor on the deal. Sidley Austin LLP and Sullivan & Cromwell LLP were the legal advisors.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.