Dallas-based Energy Transfer Equity, owner of the Lake Charles LNG export project, confirmed that it has made a proposal to merge with Williams Companies in an all-equity transaction valued at US$53.1 billion.
Under the merger proposal, ETE would acquire all of the outstanding common stock of Williams at an implied price of $64 per Williams share, which represents a 32.4% premium to the Williams common share closing price as of June 19, the company said in a statement.
The merger consideration would be in the form of common shares in an entity that would elect to be taxed as a C-corp (ETE Corp). ETE Corp would be publicly traded on the NYSE under the symbol “ETC.”
According to ETE, this transaction would create the world’s largest energy infrastructure group and the third largest energy franchise in North America.
ETE’s family of companies owns and operates approximately 71,000 miles of natural gas, natural gas liquids, refined products, and crude oil pipelines.
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LNG World News Staff; Image: Williams