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Enbridge To Buy Spectra Energy Partners In US$3.3 Bln Deal

Enbridge Inc. (ENB,ENB.TO) said Friday that it agreed to buy all of the outstanding public common units of Spectra Energy Partners LP (SEP) on the basis of 1.111 common shares of Enbridge for each common unit of SEP. The transaction is valued at US$3.3 billion or C$4.3 billion. The Agreed Exchange Ratio represents a 9.8% increase to the exchange ratio offered by Enbridge on May 17, 2018 of 1.0123 Enbridge common shares per SEP common unit.

As a result of the merger, Enbridge would acquire all of the 81.9 million public outstanding common units of SEP at a fixed exchange ratio of 1.111 common shares of Enbridge for each common unit of SEP. In aggregate, based on the Agreed Exchange Ratio, Enbridge would issue an estimated 91.0 million Enbridge common shares in connection with the transaction, representing about 5 percent of the total number of Enbridge common shares outstanding.

The transaction has been approved by the board of directors of Enbridge and certain of its wholly owned US subsidiaries.

Closing of the transaction is expected to occur in the fourth quarter of 2018 and will be subject to customary closing conditions.

If the transaction does not close before the record date for SEP's distribution to be paid in the fourth quarter of 2018, and subject to SEP Board approval, SEP is expected to pay a cash distribution to its unitholders in the fourth quarter consistent with previously disclosed distribution guidance. Based on an expected fourth quarter closing date for the transaction, a SEP unitholder will receive either a SEP cash distribution or an Enbridge cash dividend.

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