Kinder Morgan, Inc. and Terasen Inc. announced an agreement where KMI will acquire all of the outstanding shares of Terasen in a transaction that will create a leading North American energy transportation and distribution company. The purchase price is US$5.6 billion, or C$6.9 billion.
Each company's board of directors and a special committee of independent directors, created by the Terasen board, approved the transaction. This transaction will require Terasen shareholder approval by 2005, before closing.
Once the transaction is completed, Kinder will remain chairman and CEO of the combined entity, which will be known as Kinder Morgan, Inc., with corporate headquarters in Houston, Texas.
Terasen's natural gas distribution operations will remain in Greater Vancouver with its pipeline operations office in Calgary. Terasen Gas will operate under the Terasen name.