CDN NEWS | 
US NEWS 
CALGARY — Pembina Pipeline Corp. will pocket a $350-million break fee after terminating its acquisition of Inter Pipeline Ltd.
The move follows Inter Pipeline’s board advising that it would no longer recommend that shareholders support the deal after rival Brookfield Infrastructure Partners LP upped its hostile takeover bid for the Calgary-based Inter Pipeline.
Inter Pipeline had resisted Brookfield’s bid after signing a friendly all-stock deal to be bought by Pembina that would have seen its shareholders receive half a Pembina share for each Inter Pipeline share they hold.
Prominent shareholder advisory firm ISS recommended that Inter Pipeline investors reject the company’s proposed sale to Pembina and instead support the takeover by Brookfield after Inter Pipeline’s largest shareholder upped its offer to $16 billion, including debt.
Pembina’s CEO Mick Dilger says he’s disappointed by the outcome as the logic of a combination with Inter Pipeline remains “unparalleled” and the value creation impossible to replicate.
He says the company will continue to seek growth opportunities through other acquisitions.
“Pembina remains optimistic about its future, including the profitability of our existing business given foreseeable sector tailwinds, as well as with tremendous flexibility to pursue an ever increasing and more diverse set of opportunities for growth, some of which we were able to highlight and advance during this process,” he stated.
Inter Pipeline subsequently said it is open to working with Brookfield to reach a “mutually agreeable transaction.”
This report by The Canadian Press was first published July 26, 2021.
Companies in this story: (TSX:IPL, TSX:PPL, TSX:BIPC)
The Canadian Press
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