The energy company is consolidating its position.

This morning I was intrigued by the news and therefore the drop in Enbridge $ENB+0.9%. The company, is an energy giant predominantly in Kaduna but also with about 20% gas distribution to the US.

Canadian pipeline giant Enbridge Inc. has agreed to buy three energy companies from Dominion Energy Inc. in a $9.4 billion deal that will create the largest natural gas supplier in North America. The deal is worth a total of $14 billion, including debt, and will be Enbridge's largest transaction since acquiring Spectra Energy Corp. for about $28 billion in 2017.

The move comes at a time when Enbridge, North America's largest pipeline company, is pushing to position itself for a transition to low-carbon energy sources. The three companies it is buying serve customers in Ohio, Utah, Wyoming and North Carolina, where base rates are expected to grow 8% a year.

Enbridge

ENB

$36.66 $0.33 +0.91%

Capital Structure

Market Cap

78.2B

Enterpr. Val.

194.4B

Valuation

P/E

19.1

P/S

2.5

Open $36.54

Day range $36.38 - $36.78

52 week range $31.03 - $38.37

"The acquisitions we are making have longevity and the gas companies are 'essential' infrastructure for providing safe, reliable and affordable energy," Greg Ebel, Enbridge's chief executive, said in a statement.

Of course, the deal to buy the companies, which involve seven million homes and businesses in various states, will require approval from regulators, including the Federal Trade Commission, to ensure it doesn't violate antitrust laws. Enbridge said it will begin pushing ahead to secure approval immediately. The company said it expects the deal to close in 2024. Enbridge's deal with East Ohio Gas Co, Questar Gas Co and Public Service Co of North Carolina will double $ENB'+0.9%s business.

Personally, the move so far strikes me as a super investment and a step into the future, even though the overall deal includes the purchase with about $4.6 billion in debt. Because of the transition to greener energy, in my and analysts' opinion, gas still plays a significant role. The company is also on the dividend list, except what may not be so attractive is the taxation. Personally, I have the company in my portfolio and am now overbuying, however, the tax is withheld at 25%, per Canadian law.

What about you, does anyone have this company in their portfolio and how do you rate it? 😊