Deals

TransCanada Locks in Growth With $10.2 Billion Pipeline Deal

  • Acquisition expands TransCanada's U.S. natural gas reach
  • Deal supports and may boost TransCanada dividend growth
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TransCanada Corp. is undertaking its biggest-ever deal with the purchase of Columbia Pipeline Group Inc. for $10.2 billion, expanding its reach in the U.S. natural gas market.

TransCanada will pay $25.50 a share to Columbia holders, representing a 11 percent premium to Columbia’s closing price on March 16, and will also assume about $2.8 billion of debt, it said in a statement Bloomberg Terminalon Thursday. The Calgary-based company will fund the purchase with proceeds from asset sales and a C$4.2 billion ($3.2 billion) offeringBloomberg Terminal of new shares.