UPDATE 7-Enbridge buying Spectra in $28 bln deal

Tue Sep 6, 2016 3:23pm EDT
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* Spectra shareholders to get 0.984 shares of merged company

* Enbridge CEO Al Monaco to lead company

* Deal's enterprise value $127 billion

* Spectra shares up more than 10 pct, Enbridge up 4 pct (Adds graphic link)

By Richa Naidu and Sweta Singh

Sept 6 (Reuters) - Canada's Enbridge Inc said on Tuesday it would buy Spectra Energy Corp of Houston in an all-stock deal valued at about $28 billion (C$37 billion) to create the largest North American energy infrastructure company.

The takeover, the most significant energy deal since oil and natural gas prices crashed in mid-2014, highlights how pipeline companies are under pressure to merge as they grapple with overcapacity and sliding tariffs that have slowed dividend growth and unnerved investors.

Enbridge's biggest-ever deal will consolidate its leading position next to U.S. transport giants Kinder Morgan Inc and Plains All American Pipeline LP, which have seen their stock prices sink over the last two years as oil and gas producers slash spending on new wells.

Enbridge's pipelines mainly send Canadian oil sands to refiners on the U.S. Gulf Coast, while Spectra's network ships natural gas to the U.S. East Coast.   Continued...