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I Squared, Enbridge, and MPLX acquire majority stake in Matterhorn pipeline

The companies announced on Tuesday that infrastructure investment firm I Squared and midstream company MPLX LP have reached an agreement for the acquisition of up to 85% in the Matterhorn Express Gas Pipeline.

The companies stated that WhiteWater Infrastructure, which counts I Squared among its partners, would own up to 65 percent of the pipeline. Enbridge, based in Canada, and MPLX, based in Canada, will each own an additional 10% of the Matterhorn Pipeline following the closing of the deal.

In a statement, it was stated that the companies would be acquiring these equity interests from Devon Energy Corp and Ridgemont Equity Partners, a private equity firm.

It was reported this week that Miami's I Squared Capital is in negotiations to buy a majority stake of the WhiteWater Midstream natural gas pipeline. Bloomberg reported that a deal could be worth more than $5 billion, including debts, for the Matterhorn Express pipeline.

WhiteWater's equity stake in the Matterhorn Express Pipeline is to be backed jointly by infrastructure investment firms FIC and I Squared. WhiteWater will continue operating the Matterhorn Express Pipeline.

MPLX announced earlier on Tuesday that it was acquiring a 5% additional interest in the joint-venture that owns the Matterhorn Express Pipeline for $151 million.

The Matterhorn Pipeline transports natural gas to Houston from the Permian basin in West Texas and New Mexico. According to its website, the 580-mile pipe was designed to transport up to 2.5 billion cubic feet of gas per day.

(source: Reuters)