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TC Energy CEO Russ Girling addresses the company's annual meeting in Calgary on May 3, 2019.Jeff McIntosh/The Canadian Press

TC Energy Corp. says it has signed a deal to buy out the other unitholders of TC PipeLines LP, a U.S. master limited partnership it operates, after raising its earlier offer.

Under the sweetened proposal, TCP unitholders will receive 0.7 of a TC Energy share for each unit they hold.

TC Energy had offered 0.65 of a share in October.

The company says the deal values TC PipeLines at US$1.68-billion.

The board of directors of the partnership’s general partner has approved the agreement.

The deal is expected to close late in the first quarter or early in the second quarter of 2021 subject to the approval by TCP unitholders and regulatory approvals.

“The acquisition of TC PipeLines LP provides us with the opportunity to consolidate our ownership interest in eight FERC regulated natural gas pipelines that are an integral part of our overall North American network,” TC Energy chief executive Russ Girling said in a statement.

“In addition, completion of the transaction will serve to further simplify our corporate structure.”

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