Calgary based Enbridge plans to buy Houston-based Spectra Energy for stock worth $37 billion.
The combination of the two pipeline companies would create a North American energy infrastructure giant.
The company’s natural gas pipelines business would be based in Houston and the liquids pipelines business would be based in Edmonton.
Under the proposed deal, shareholders of Enbridge would own about 57 per cent of the combined company and the rest would be owned by Spectra shareholders.
The new company would be known as Enbridge Inc. and would be based in Calgary.