Brookfield Nears Colonial Pipeline Deal As Canada’s Carney Maintains Pipeline Restrictions

Canadian Prime Minister Mark Carney has rejected calls to repeal controversial pipeline legislation even as Brookfield Asset Management (NYSE: BN), a firm he formerly chaired, approaches a $9 billion-plus acquisition of Colonial Pipeline, the largest US fuel transportation system, sources told Reuters.

“We do not plan to repeal Bill C-69,” Carney said Tuesday at a press conference in Winnipeg, referring to legislation that critics say blocks new pipeline development in Canada. The statement contradicts earlier campaign rhetoric where he advocated for pipelines running from east to west, including through Quebec.

Read: Carney Won’t Repeal Pipeline Legislation Despite Tariff Pressures 

Meanwhile, Brookfield Asset Management is nearing completion of negotiations to acquire Colonial Pipeline for more than $9 billion including debt, according to people familiar with the matter who spoke on condition of anonymity because the discussions remain private.

The New York-based asset manager has won the competitive auction process run by the pipeline’s five owners over several months, the sources said. The transaction could be announced within weeks if negotiations conclude successfully, they added.

Opposition Conservative leader Pierre Poilievre quickly criticized Carney’s position, arguing the Liberal legislation has “BILLIONS of dollars of investment in oil & gas projects, pipelines, LNG plants, mines, and so much more.”

During his tenure at Brookfield, Carney oversaw expansion into energy infrastructure, including fossil fuel assets. He also co-chaired two investment funds registered in Bermuda worth about USD$25 billion, with public documents stating they were each “dedicated to the transition to a net-zero economy.”

Colonial’s pipeline system stretches over 5,500 miles from Houston in Texas to New York’s harbor. It moves more than 100 million gallons of fuel daily, including gasoline, jet fuel, diesel and heating oil, according to its website.

Bloomberg reported earlier in March that Brookfield was leading efforts to acquire Colonial Pipeline for more than $10 billion.

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