Post by
Experienced on Sep 07, 2023 8:13am
Couple of Things
For what it's worth.....
1....Dominion said that their their after tax was close to the actual cash provided by ENB. This got me thinking. Seems that they bought Questar in 2016 for 6.1 billion including the purchase price and assumption of debt. A couple of years ago,they sold the Questar pipelines for about 2 billion. ENB bought Questar for about 4.3 billion which is basically the price that Dominion bought it for 7 years ago (netting out the pipeline sale).
2....The deal seems to include provisions that ENB has to honour exisitng union contracts and can't lay off people (no indication of how long they have to honour this). But it does mean that the usual takeover benefits of efficiency gains through combining operational staff is dimished in this deal for some unspecified period of time (until the next union bargaining session?)
3....in terms of getting regulatory approval for the deal it is worth noting that all the states that the three aquired companies operate in are Republican except for Ohio which is considered a swing state (ie a tossup). IMO opinion based on my knowledge of US politics, i would consider this a good thing in terms of getting the deal done.