Economics
Inter Pipeline Makes $1 Billion Bet on Rally in Williams Deal
- Purchase includes liquids extraction, fractionator, pipelines
- Inter Pipeline to continue Williams’ plastics plant proposal
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Inter Pipeline Ltd. has agreed to acquire the Canadian assets of Williams Cos. for C$1.35 billion ($1 billion), betting that a rebound in commodity prices will justify the expansion of its natural-gas liquids business.
The purchase includes extraction and processing facilities in the oil sands in Alberta, as well as about 260 miles (418 kilometers) of pipelines from Williams and its master-limited partnership unit, Williams Partners LP, the companies said in statements on Monday. Williams and Williams Partners said they plan to use the cash proceeds to shrink debt.