TransCanada Corporation, the Calgary-based North American energy company, has announced on Thursday its acquisition of Columbia Pipeline Group (CP) for $10.2 billion. The announcement appears after the energy infrastructure developer has failed to obtain approval for building the controversial Keystone XL oil pipeline. Through acquiring the gas transmission company, TransCanada implements another plan for growing in the US.

The deal is expected to offer TransCanada a strategic position in the most promising regions in the US for gas production growth. The regions include Marcellus and Utica shales of Pennsylvania, Ohio and West Virginia. Columbia has already started implementing $5.6 billion expansion project compared to TransCanada's negligible efforts in this regard before making the deal, reports Financial Times.

TransCanada observes the deal as a rare, attractive opportunity for transforming it as one of the largest natural gas businesses in the North America. Columbia's largest major assets include 11,300 miles pipelines and 286 billion cubic feet of natural gas storage facilities in the Marcellus and Utica shale gas regions. After closure of the acquisition, TransCanada will own about 57,000 miles of gas pipelines, according to a report published in The New York Times.

Under the deal, the Calgary based energy giant will pay $25.50 against each share to the Columbia holders. The dealt price represents a 10.9% premium with the Columbia's closing price on March 16.