ETE created a new entity, Energy Transfer Corp LP (ETC) , to serve as the acquiring vehicle.
The merger was terminated in June 2016 due to several critical factors:
If you need specific details for a , litigation summary , or a comparison to a different deal , let me know. I can also focus on the legal, financial, or strategic aspects of this failed transaction. energy transfer williams buyout
The deal required a tax opinion from Latham & Watkins LLP that the transaction would be tax-free. Latham advised they could not deliver this opinion, a condition needed for closing.
In September 2015, Energy Transfer Equity, L.P. (ETE) announced a definitive agreement to acquire The Williams Companies, Inc. (WMB) in a cash-and-stock transaction valued at approximately $33 billion to $37.7 billion (including debt). The deal aimed to create one of the world's largest energy infrastructures, holding roughly 100,000 miles of pipelines. Key Deal Components ETE created a new entity, Energy Transfer Corp
The acquisition was highly prized for Williams' 10,000-mile Transco natural gas network, a major artery connecting Texas to the Northeast.
Williams shareholders were offered a combination of ETC common shares and cash ($6.05 billion in aggregate). The deal required a tax opinion from Latham
The merger failed, and both companies remained independent. The event is widely studied as a case study in failed corporate mergers driven by changing market conditions and unmet closing conditions (specifically, tax opinions).