Enbridge to buy EEP's Midcoast Gas interest for $1.31B; EEP cuts distribution

|About: Enbridge Energy Partners L.P. (EEP)|By:, SA News Editor

Enbridge (NYSE:ENB) completes strategic review of Enbridge Energy Partners (NYSE:EEP), and agrees to acquire EEP's interest in the Midcoast Gas Gathering and Processing business for US$1.31B plus ~$840M in existing indebtedness of Midcoast Energy Partners (NYSE:MEP).

Also, EEP's quarterly distribution will be reduced to US$0.35/unit from US$0.583.

"The objective of the strategic review was to re-establish EEP as an effective sponsored vehicle for the benefit of EEP unitholders and Enbridge," ENB says, adding that "today's actions, and those undertaken earlier this year, achieve this objective by returning EEP to a pure-play liquids pipeline MLP."