By OGJ editors
HOUSTON, June 17 -- In a move to create one of the largest consolidated natural gas pipeline companies in the US, Dallas-based Energy Transfer Equity LP (ETE) entered into a merger agreement with Southern Union Co. to acquire the Houston-based gas transportation, storage, and gathering company for $7.9 billion. The deal includes $3.7 billion of existing Southern Union debt.
The deal, which has been unanimously approved by the boards of both companies, will provide ETE with direct ownership of assets that are complementary to assets already owned and operated by ETE’s two master limited partnership subsidiaries, Energy Transfer Partners LP and Regency Energy Partners LP.
The combined footprint of ETE (together with ETP and REP) along with Southern Union will include more than 44,000 miles of gas pipelines and 30.7 bcfd of gas transportation capacity.
After the transaction closes, Southern Union will become a wholly owned ETE subsidiary. The deal is expected to close in first-quarter 2012.