If Williams holders chose to receive more than an aggregate of $6.05 billion cash, the deal would be subject to proration.
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In the deal with Energy Transfer Equity, Williams will keep its company name and remain headquartered in Tulsa, Oklahoma.
Williams investors will get $43.50 a share either in cash or stock of Energy Transfer Corp.
The transaction is expected to close in the second-half fiscal 2016.
Energy Transfer announced June 21 it had offered $48 million in stock for Williams.
In June, it rejected the offer saying that the offer undervalues the company and would not provide value it can achieve on a standalone basis.
Williams stockholders are to receive an implied price of $43.50. Its offer was contingent on the termination of Williams’ pending acquisition of natural gas master limited partnership Williams Partners, in which Williams holds a 66% interest. Energy Transfer Equity, L.P. The Organization ‘s operating segments comprise Investment in ETP, including the consolidated businesses of ETP; Investment in Regency, for instance, consolidated operations of Regency; Investment in Lake Charles LNG, including the operations of Lake Charles LNG and Corporate and Other, including actions of the Parent Company.
Williams Partners owns and operates more than 33,000 miles of pipelines system wide including the nation’s largest volume and fastest growing pipeline providing natural gas for clean-power generation, heating and industrial use.
The ETE merger with Williams was predicated on Williams’ decision to cancel a previously announced merger agreement between Williams and its affiliate Williams Partners. (NYSE:WMB), another pipeline company, in a $32.6 billion deal. Analysts expect that Energy Transfer Partners will post $1.13 EPS for the current year.
The Williams acquisition would give Energy Transfer a new foothold in the Gulf of Mexico and help it to become a dominant player in the natural gas market in the United States.
Energy Transfer projected immediate benefits to its cash flow and distributions upon closing, according to its press announcement Monday. CEO and President Alan Armstrong said the combined company will better handle today’s low energy prices. An engineer by training, he has built Energy Transfer into one of the top oil and gas transportation companies by acquiring companies including Sunoco Inc. and Southern Union.
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A source familiar with the deal said ETE approached Williams in April to open merger negotiations. Williams had proposed buying the rest of Williams Partners LP units it doesn’t already own for $14 billion. On a different note, The Company has disclosed insider buying and selling activities to the Securities Exchange, Aube Sonia, officer (VP-Administration, Secretary) of Energy Transfer Equity, L.P., had purchased 800 shares on August 24, 2015.
