Energy Transfer Equity ends merger agreement with Williams

June 29, 2016 By    

Energy Transfer Equity LP terminated its merger agreement with Williams Cos. Inc.

The companies announced plans in September 2015 to merge, through a $37.7 billion transaction that would have formed one of the largest energy franchises in North America.

According to Energy Transfer Equity, the Delaware Court of Chancery issued an opinion, finding the company could terminate the merger agreement if Latham & Watkins LLP, the company’s counsel, was unable to deliver a required tax opinion prior to June 28. Latham did not meet the deadline, Energy Transfer Equity notes in a company statement, and the energy services provider followed by terminating the merger agreement.

Williams has appealed the decision by the Delaware Court of Chancery to the Delaware Supreme Court. According to Williams, the company does not believe Energy Transfer Equity has a right to terminate the merger agreement. Williams says Energy Transfer Equity breached the agreement by failing to cooperate and use necessary efforts to satisfy the closing conditions.

Energy Transfer Equity is a master limited partnership that owns the general partner and distribution rights of Energy Transfer Partners LP and Sunoco LP. Energy Transfer companies own and operate about 71,000 miles of natural gas, natural gas liquids, refined products and crude oil pipelines.

Williams, based in Tulsa, Okla., is a provider of large-scale infrastructure connecting North American natural gas and natural gas products to growing demand for cleaner fuel and feedstocks.

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