Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL) (NYSE: PBA) today announced that the Canadian Competition Bureau has issued a no-action letter for the joint venture transaction announced on March 1, 2022, between Pembina and KKR to combine their respective western Canadian natural gas processing assets into a single, new joint venture entity (“Newco”) (the “Transaction”). Issuance of the no-action letter allows Pembina and KKR to proceed with next steps on closing the Transaction, which is expected to occur in August 2022 subject to the satisfaction of the remaining conditions. Pursuant to an agreement with the Competition Bureau, and consistent with Pembina’s and KKR’s intention to divest upon announcing their joint venture, Pembina and KKR’s global infrastructure funds will divest the 50 percent, non-operated interest in the Key Access Pipeline System which will be contributed into Newco as part of the Transaction.
“Pembina is pleased to have received all regulatory approvals and is satisfied with the outcome and timely resolution of the Competition Bureau review. We are very excited to be able to move forward with our joint venture with KKR. We look forward to closing the transaction in the coming weeks and pursuing the efficiencies, cost reductions and enhanced customer service offering anticipated from combining three complementary platforms to create a premier, highly competitive western Canadian gas processing entity,” said Jaret Sprott, Pembina’s Senior Vice President & Chief Operating Officer.
