Pembina Pipeline Corporation (TSX:PPL) and KKR & Co. Inc. (NYSE:KKR) entered into a definitive agreement to acquire 51% stake in Energy Transfer Canada ULC from Energy Transfer LP (NYSE:ET) on March 1, 2022. Pembina Pipeline also announced that it has entered into definitive agreements with KKR to combine their respective western Canadian natural gas processing assets into a single, new joint venture entity (Newco), which will be owned 60% by Pembina and 40% by KKR's global infrastructure funds. Pembina will serve as the operator and manager of Newco. Included in the transaction are Pembina's field-based natural gas processing assets, the Veresen Midstream business (currently owned 55% by funds managed by KKR and 45% by Pembina), and the business currently carried on by Energy Transfer Canada (currently owned 49% by funds managed by KKR). Concurrently with closing of the joint venture transaction, Newco will also acquire Energy Transfer LP's remaining 51% interest in Energy Transfer Canada. Collectively, the ascribed value of these transactions is $8.95 billion, excluding the value of assets under construction. The sale is expected to result in cash proceeds to Energy Transfer of approximately $270 million, subject to certain purchase price adjustments. Completion of the transactions is subject to approval under the Competition Act (Canada). The transaction is expected to close by the third quarter of 2022. As of July 28, 2022, Pembina Pipeline Corporation received all regulatory approvals and is satisfied with the outcome and timely resolution of the Competition Bureau review. 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.

TD Securities Inc. acted as financial advisor to Pembina Pipeline Corporation. Vinson & Elkins LLP acted as legal advisor to Energy Transfer LP.