Enbridge, a Canadian pipeline company, will merge with its US rival, Spectra Energy, in a deal worth $127bn.
Editor’s Remarks: The merged company will become the largest energy infrastructure group in North America. Spectra will change its name to Enbridge, and the organisation will be headquartered in Calgary. The move highlights changes in the oil and gas industry as companies aim to capitalise on the global oil glut. After a series of acquisitions and mergers announced at the end of last year, 2016 should see several more before the year ends. Oil companies are beginning to see that oil will continue to hover around current prices for some time, and they must look for new ways to increase efficiencies.
What to watch: Unbridle, Spectra Energy, Brent Crude, WTI