Energy Transfer LP, Dallas, has closed on the $5-billion deal to acquire SemGroup Corp., Tulsa, the companies reported (OGJ Online, Sept. 16, 2019). The acquisition increases Energy Transfer’s scale across multiple regions and provide increased connectivity for its crude oil and NGL transportation businesses, the company said.
The terms of the agreement were approved by the holders of a majority of SemGroup’s outstanding voting stock at a special meeting of SemGroup stockholders on Dec. 4. As a result of the merger, Energy Transfer issued 57.6 million of its common units to SemGroup stockholders.
Combined operations are expected to generate annual run-rate efficiencies of more than $170 million, consisting of commercial and operational synergies of $80 million, financial savings of $50 million, and cost savings of $40 million, the companies said.
