By Paul Vieira
OTTAWA--Canada's antitrust watchdog said Tuesday it is seeking to quash Keyera's proposed deal for Plains All American Pipeline's Canadian natural-gas business.
The Competition Bureau said the planned $3.7 billion transaction would reduce competition at a crucial natural-gas liquids processing hub in Fort Saskatchewan, Alberta. The bureau said Canadian producers rely on that hub to bring product to market.
The deal would reduce the number of major integrated service providers at the hub from three to two, "limiting producers' choice among providers for processing services and weakening competitive discipline in contract negotiations," the bureau said.
The bureau has filed an application to the Competition Tribunal to hear its case.
Keyera's planned takeover would establish a natural gas liquids corridor in Canada for the company, with assets that include extraction, fractionation and storage operations, as well as rail and truck terminals in Alberta, Saskatchewan, Manitoba and Ontario. The company has said the move would allow it to be more competitive in the services it offers and in terms of reliability, while bringing an opportunity to cut costs.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
05-05-26 0946ET
