TransCanada, Nova shareholders okay merger

Shareholders of TransCanada Pipelines Ltd. and Nova Corp., both of Calgary, have voted almost unanimously to merge the companies. The merged company, with assets of $21 billion (Canadian) and revenues of $15.6 billion, will be the fourth largest energy services company in North America. Merger plans were disclosed in January (OGJ, Feb. 2, 1998, p. 30).

July 6, 1998

2 min read

Shareholders of TransCanada Pipelines Ltd. and Nova Corp., both of Calgary, have voted almost unanimously to merge the companies.

The merged company, with assets of $21 billion (Canadian) and revenues of $15.6 billion, will be the fourth largest energy services company in North America. Merger plans were disclosed in January (OGJ, Feb. 2, 1998, p. 30).

TransCanada operates more than 9,000 miles of natural gas pipeline connecting Western Canada producers to North American markets. Nova operates the 13,484-mile pipeline system connecting Alberta producers to provincial and export markets. The merged company will have a combined pipeline network totaling 22,484 miles. Both companies have international units in South America and elsewhere. A new name has not been announced for the merged company.

Nova Chemicals, with major petrochemical operations in Alberta and Ontario and $3.4 billion in revenues and $3.9 billion in assets, will be spun off as a separate company.

Next step

TransCanada Pres. and CEO George Watson said the final step is to apply for court approval. Subject to that, the transaction was to close July 2. Trans- Canada shareholders approved the deal by a 99.9% vote. Nova shareholders approved by a 99.89% vote.

Watson said it will significantly improve the competitive position and offer new global opportunities for the new entity in an increasingly competitive market.

J.E. (Ted) Newell said the merger represents the birth of a major Canadian company with remarkable strengths and a commanding presence in global energy.

The merger has received all regulatory approvals and cautious approval from Western Canada producers who expressed some concerns about the size of the merged operation. The merged company will continue to be headquartered in Calgary.