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Energy Transfer will buy Williams at new, lower price

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World Pipelines,


Pipeline giant Energy Transfer Equity LP is to buy rival Williams Cos Inc. in a deal valued around US$33 billion.

This amount is nearly a third less than the same offer Williams had rejected in June for being too small.

Williams will give Energy Transfer Chief Executive Kelcy Warren new assets in the deepwater Gulf of Mexico and a dominant position in the Marcellus Shale play.

The takeover will create one of the world's largest energy infrastructure companies, alongside Kinder Morgan Inc. and Enterprise Products Partners.

Comment from Williams

Williams Chief Executive Alan Armstrong told investors that the newly formed company would be stronger: "As a combined company, we will have ... more stability in an environment of low commodity prices," he said.

New projects

Energy Transfer said the deal will generate US$2 billion in higher profit annually by 2020 as the combined company pursues as many as 20 new projects ranging from gas pipelines to New England and oil lines carrying crude from the most-profitable basins to refineries along the Gulf Coast.

Edited from various sources by Elizabeth Corner

Sources: ReutersWall Street JournalBloomberg

Read the article online at: https://www.worldpipelines.com/project-news/29092015/energy-transfer-will-buy-williams-at-new-lower-price/

 

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