Pembina Pipeline Corp has reported that the Canadian Competition Bureau has issued a no-action letter for the Joint Venture transaction made public on March 1, 2022, between Pembina and KKR to combine their respective western Canadian natural gas processing assets into a single, new JV entity (Newco).
Issuance of the no-action letter allows Pembina and KKR to proceed with next steps towards closing the transaction, which is expected to happen in August 2022 subject to the satisfaction of the remaining conditions. Pursuant to an agreement with the Competition Bureau, and consistent with Pembina’s and KKR’s intention to divest upon announcing their JV, Pembina and KKR’s global infrastructure funds will divest the 50 percent, non-operated interest in the Key Access Pipeline System which will be contributed into Newco as part of the transaction.
Jaret Sprott, Pembina’s senior vice president and chief operating officer, said: “Pembina is pleased to have received all regulatory approvals and is satisfied with the outcome and timely resolution of the Competition Bureau review. We are very excited to be able to move forward with our joint venture with KKR.
“We look forward to closing the transaction in the coming weeks and pursuing the efficiencies, cost reductions and enhanced customer service offering anticipated from combining three complementary platforms to create a premier, highly competitive western Canadian gas processing entity.”
For more information visit www.pembina.com
