Enbridge Inc. is selling its Enbridge Gas New Brunswick business to Liberty Utilities (Canada) LP, a wholly-owned subsidiary of Algonquin Power and Utilities Corp., for a cash purchase price of $331 million.
Enbridge said closing of the deal is subject to the receipt of regulatory approvals and other customary closing conditions expected in 2019.
“This is a great franchise with a complement of dedicated and hard-working employees. The sale aligns with Enbridge’s priority of focusing on expanding and growing its business in core markets,” said Cynthia Hansen, executive vice-president of utilities and power operations at Enbridge, in a news release.
“Enbridge will work with Liberty Utilities to ensure a safe and orderly transition of business operations.”
The company said Enbridge Gas New Brunswick operates and maintains more than 1,200 kilometres of natural gas distribution pipeline in 12 communities in southern New Brunswick, serving 12,000 customers.
“Employees, customers, partners and suppliers of the franchise can expect no change to the day-to-day operations as Enbridge works with Liberty Utilities to complete the transition of operations. It is anticipated the transition will take a number of months. Enbridge is committed to keeping stakeholders informed as this work progresses,” said Enbridge.
“Enbridge remains fully committed to maintaining its ownership interest in the Maritimes and Northeast Pipeline, which serves markets in Atlantic Canada, including New Brunswick, and the northeastern United States.”