Project Portfolio – Post Merger Integration

TransCanada Midstream - Midstream Gas Company 1998-99

Objectives

TransCanada Midstream (TCM) was created as part of the 1998 merger of Nova Corporation and TransCanada Pipelines. The midstream businesses had been built as growth engines for the parent companies’ regulated pipelines and the combined midstream business was substantial: $1.4 billion of assets, 23 facilities in Canada and the US, with substantial market share in natural gas liquids and gas processing in Canada and Louisiana. Both midstream companies had been growing rapidly and they had a total of $700 million of projects under construction as the merger closed.

The leadership of TCM needed to create an integrated company quickly. The predecessor companies had been competitors, and their approaches to the business were substantially different, but the people from these companies had to operate their assets in a unified way if merger was to produce any gains.

Fall Line’s Role

Fall Line Systems acted as the Integration Coordinator for TCM. We helped design the new organization structure, developed selection criteria and processes for placing leaders, coordinated communications to staff, established integration priorities, facilitated joint strategy building, structured decision processes, coached leaders, helped build leadership teams.

Results

TCM integrated its business and people faster than any other segment of the corporate merger. Business decisions quickly took on a TCM perspective, although it proved difficult to develop a strategy that fit the scale of TCM in a deteriorating market for its key commodities. Safety and financial performance were a concern in the early days but these were brought into line.