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KEY TAKEAWAYS
- BlackRock and Morgan Stanley agreed to buy TC Energy’s Portland Natural Gas Transmission System in a deal worth $1.14 billion.
- The move comes not long after BlackRock agreed to buy Global Infrastructure Partners for approximately $12.5 billion in January, as the world’s largest asset manager expands its focus on infrastructure.
- TC Energy CEO Francois Poirier said that the deal was part of the Canadian company’s effort to boost its balance sheet by selling off assets.
BlackRock (BLK) and Morgan Stanley (MS) shares advanced Monday as Canada’s TC Energy (TRP) said it would sell its Portland Natural Gas Transmission System (PNGTS) to them for $1.14 billion.
The deal is between the energy infrastructure services provider and its partner, Energir L.P., and BlackRock’s diversified infrastructure business and investment funds managed by Morgan Stanley. It includes $250 million in debt.1
The move comes not long after BlackRock agreed to buy Global Infrastructure Partners for approximately $12.5 billion in January, as the world’s largest asset manager expands its focus on infrastructure.
TC Energy CEO Francois Poirier said the decision represented continued progress toward the company’s plan of enhancing its balance sheet in 2024 “by delivering approximately $3 billion in asset divestitures.” He added that the sale “is a unique opportunity to support our capital rotation and deleveraging priorities.”
PNGTS operates about 295 miles of gas pipelines serving upper New England and the Atlantic provinces of Canada.
The Alberta-based firm said the transaction was expected to be completed by the middle of the year.
Morgan Stanley shares gained 4.1% Monday, while BlackRock shares advanced 2.4%. Shares of TC Energy were little changed.
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