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Brookfield Moves Closer to Pipeline Victory as Pembina Exits

  • Calgary firm drops Inter Pipeline bid, gets C$350 million fee
  • Brookfield recently revised terms of its hostile takeover bid
An Inter Pipeline petrochemical complex under construction in Strathcona County, Alberta.

An Inter Pipeline petrochemical complex under construction in Strathcona County, Alberta.

Photographer: Jason Franson/Bloomberg
Updated on

The takeover battle for one of Canada’s largest energy companies moved closer to resolution after Pembina Pipeline Corp. terminated its C$8.5 billion ($6.7 billion) deal to acquire Inter Pipeline Ltd., clearing a path for Brookfield Infrastructure Partners LP, which has pursued a hostile bid.

Inter Pipeline will pay a C$350 million termination fee to Pembina and will make a recommendation to shareholders on Brookfield’s unsolicited offer “in due course,” according to a statement Monday. After five months of trying to fend off its suitor, Inter said its board is “open to engaging with Brookfield in an effort to reach a mutually agreeable transaction.”