Energy Transfer Equity buys rival for nearly US$33 billion

Energy Transfer Equity LP plans to buy rival Williams Companies Inc. in a deal valued at nearly US$33 billion, reports Reuters.

Energy Transfer Equity has been pursuing Williams Cos since January 2015, adds Reuters. As it reports, “The takeover marks the first major buyout of a mid-stream company since oil prices crashed.” Read more.

Associated Press adds that the merge of the two companies will create one of the five biggest energy companies in the world.

It says that Energy Transfer Equity will pay US$43.50 per share, a 4.6% premium to Williams’ Friday closing price of US$41.60. Williams’ shareholders can choose: shares of Energy Transfer Equity’s affiliate Energy Transfer Corp; cash; or a combination of both options.

Including debt and other liabilities, the two companies value the deal at about US$37.7 billion.

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Staff, with files from The Associated Press

The Associated Press is an American not-for-profit news agency headquartered in New York City.