As expected following the landmark gas accord in Canada in thefirst week of April, it has been smooth sailing for the merger ofTransCanada and Nova Corp. The Alberta Energy and Utilities Boardgave its blessing to the deal this week. And the companies said theCanadian Competition Bureau has completed its review of thetransaction without requesting alterations.

“The two companies are moving full steam ahead to complete themerger in early July, assuming we receive the required approvalsfrom our respective shareholders and the court,” said TransCanadaCEO George Watson.

“We are very pleased with the decision of the AEUB as it was acritical hurdle for us to move forward,” Nova CEO Ted Newall saidin a statement.

The Bureau said the gas accord was a key step in assuring a morecompetitive framework in the Canadian gas industry. By signing theaccord, producers agreed to withdraw a motion that threatened todelay the merger indefinitely before the AEUB. In exchange, themerger partners committed to removal of postage stamp tolls onNova, allowing greater pipeline competition in Canada and toproviding the producing community with greater access to andinfluence in pipeline affiliated marketing operations.

The only steps left for the merger to move forward are approvalsfrom the shareholders of both pipeline companies, which areexpected on June 29, and approval of the Court of Queen’s Bench.Nova and TransCanada said the expect the merger to be completedJuly 2.

Under the merger transaction, the two regulated pipelines willremain separate entities. Nova will remain a provincial pipelineregulated by the AEUB, and TransCanada will maintain its separateinterstate status regulated by the National Energy Board. NovaChemicals is expected to be spun off as a separate, publicly tradedcompany. The unregulated energy services arms of the two companieswill be combined.

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