India, Sept. 9 -- Enbridge Inc. (ENB,ENB.TO) on Wednesday announced that it has agreed to acquire Tallgrass Energy's crude oil business for $2.55 billion in cash, expanding its crude transportation footprint across the U.S. Rockies and strengthening its North American liquids pipeline network.
The acquired business includes a 75% interest in Pony Express Pipeline, a 1,050-mile crude system with approximately 460 kbpd of capacity connecting Rockies production to Cushing, Oklahoma.
It also includes a 51% interest in the Powder River Gateway system, about 8.4 million barrels of crude storage capacity across nine terminals, and Stanchion Energy, a crude marketing business.
The transaction represents an estimated acquisition multiple of 10-11...