A merger proposed between Canadian firm Enbridge and Houston-based Spectra Energy Corp. could create the largest energy infrastructure company in North America.

The companies announced on September 6 that they have entered into a definitive agreement to combine in a stock-for-stock merger transaction that has an enterprise value of $ 127 billion. The transaction was reportedly approved by both companies’ boards of directors and could close in the first quarter of 2017, if shareholders and regulators approve it.

If completed, Enbridge shareholders would hold 57% and Spectra shareholders would own 43% of the combined company, which is to be called “Enbridge Inc.” It would be headquartered in Calgary, Alberta, though Houston would remain the company’s gas pipelines business unit center.

The merger would bring together the companies’ myriad energy infrastructure assets in North America, including liquids and gas pipelines, U.S. and Canadian midstream businesses, a regulated utility portfolio, and several renewable projects.

“Enbridge has been assessing opportunities to extend and diversify our sources of growth,” Enbridge President and CEO Al Monaco told investors in a webcast on Sept.…

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