Pembina Pipeline Corporation’s $4.35 Billion Acquisition of Kinder Morgan U.S. portion of the Cochin Pipeline system

J.P. Morgan has served as financial advisor to KML in the transaction. BMO Capital Markets has served as financial advisor to the KML special committee in the transaction. Blake, Cassels & Graydon LLP acted as Canadian legal advisor to KML and Bracewell LLP acted as U.S. legal advisor to KML. Goodmans LLP acted as legal advisor to the KML special committee in the transaction. TD Securities Inc. acted as exclusive financial advisor to Pembina. Stikeman Elliott LLP acted as Canadian legal advisor to Pembina and Latham & Watkins LLP acted as United States legal advisor to Pembina.

Calgary-based Pembina Pipeline Corporation (TSX: PPL; NYSE: PBA) is a leading transportation and midstream service provider that has been serving North America’s energy industry for 65 years.

The Company executed the acquisition of Kinder Morgan Canada Limited (TSX: KML) and the U.S. portion of the Cochin Pipeline system from Kinder Morgan, Inc. for a total purchase price of approximately US$4.35 billion.

The transaction values Kinder Morgan Canada at approximately US$2.3 billion, or US$15.02 per share, based on an all-share exchange ratio of 0.3068 of a common share of Pembina per KML security and Pembina’s 30-day volume weighted average price on the date hereof; and Cochin US at approximately US$2.05 billion for cash consideration.

Through the Transaction, Pembina will acquire strategically located assets including the Cochin Pipeline System, the Edmonton storage and terminal business and Vancouver Wharves, a bulk storage and export/import business.

Upon closing, the Transaction immediately provides Pembina with well-established business platforms and substantial opportunities for growth.

Latham & Watkins LLP represents Pembina with a corporate team led by New York partner Christopher Cross (Picture) and Houston partner Jesse Myers with New York associates Javier Stark, Molly Ryan, Vi Thai Tran, Rachelle Polsky and Houston associates Lauren Anderson, Michael Sellner and Sarah McLeroy. Advice was also provided on tax matters by Houston partner Tim Fenn with associate Jared Grimley; on employee benefits matters by New York partner Bradd Williamson with associate Megan Alessi; on energy regulatory matters by Washington, D.C. partner Eugene Elrod with associates Tyler Brown and Christopher Randall; on environmental matters by Houston partner Joel Mack with Washington, D.C. associate Joshua Marnitz; on intellectual property matters by New York partner Steven Betensky with associate Pelin Serpin; on export controls and sanctions matters by Washington, D.C. partner Les Carnegie with associate Bridget Reineking; on antitrust matters by Washington, D.C. partner Jason Cruise and counsel Patrick English with associate Carla Weaver; on finance matters by Houston partner Trevor Wommack with associate Benjamin Gelfand; on real estate matters by Chicago partner Rachel Bates with New York associate Shira Bressler; and on securities matters by Washington, D.C. partner Paul Dudek.

Bracewell LLP is representing Kinder Morgan, Inc. with a team including W. Cleland Dade, Lytch T. Gutmann, Rebecca L. Baker, Heather L. Brown, Troy L. Harder, Jason M. Jean, Steven J. Lorch, D. Kirk Morgan II, Aaron P. Roffwarg, Scott C. Sanders, Timothy A. Wilkins, Tamara L. McKinzie, Kate B. McGregor, Kathy Witty Medford, Jay N. Larry and Catherine B. Engell.

Involved fees earner: Rebecca Baker – Bracewell; Kate Barrington McGregor – Bracewell; Heather Brown – Bracewell; Cleland Dade – Bracewell; Catherine Engell – Bracewell; Lytch Gutmann – Bracewell; Troy Harder – Bracewell; Jason Jean – Bracewell; Jay Larry – Bracewell; Steven Lorch – Bracewell; Tamara McKinzie – Bracewell; Kathy Witty Medford – Bracewell; Kirk Morgan – Bracewell; Aaron Roffwarg – Bracewell; Scott Sanders – Bracewell; Timothy Wilkins – Bracewell; Megan Alessi – Latham & Watkins; Lauren Anderson – Latham & Watkins; Rachel Bates – Latham & Watkins; Steven Betensky – Latham & Watkins; Shira Bressler – Latham & Watkins; Tyler Brown – Latham & Watkins; Les Carnegie – Latham & Watkins; Christopher Cross – Latham & Watkins; Jason Cruise – Latham & Watkins; Paul Dudek – Latham & Watkins; Eugene Elrod – Latham & Watkins; Patrick English – Latham & Watkins; Timothy Fenn – Latham & Watkins; Benjamin Gelfand – Latham & Watkins; Jared Grimley – Latham & Watkins; Joel Mack – Latham & Watkins; Joshua Marnitz – Latham & Watkins; Sarah McLeroy – Latham & Watkins; Jesse Myers – Latham & Watkins; Rachelle Polsky – Latham & Watkins; Christopher Randall – Latham & Watkins; Bridget Reineking – Latham & Watkins; Molly Ryan – Latham & Watkins; Michael Sellner – Latham & Watkins; Pelin Serpin – Latham & Watkins; Javier Stark – Latham & Watkins; Vi Thai Tran – Latham & Watkins; Carla Weaver – Latham & Watkins; Bradd Williamson – Latham & Watkins; Trevor Wommack – Latham & Watkins;

Law Firms: Bracewell; Latham & Watkins;

Clients: Kinder Morgan; Pembina Pipeline Corporation;

Author: Ambrogio Visconti