Williams-Energy Transfer Receives Merger Approval With Conditions
Zacks Investment Research | Jun 09, 2016 10:56PM ET
Williams Companies, Inc. (NYSE:WMB) and Energy Transfer Equity LP (NYSE:ETE) merger was recently approved by the U.S. Federal Trade Commission, subject to certain conditions.
The approval is contingent on the combined entity agreeing to sell Williams' 50% stake in an interstate natural gas pipeline that serves Florida –its electric power companies in particular. The antitrust approval was the last regulatory hurdle for the closure of this $20 billion deal.
Notably, Williams’ shareholders will vote for the pending merger on Jun 27. Under the current terms, the merger will fall though if it is not closed by Jun 28, 2016.
Last September, Williams and Energy Transfer Equity signed the merger agreement to help both companies brave the low oil prices. In fact, the deal was estimated to close by the first half of 2016. However, both players have been embroiled in a legal tussle, suing each other for months.
Recently, Williams filed a suit against Energy Transfer Equity to ensure that their merger remains on track. The company took the legal step when Energy Transfer Equity expressed concerns over the merger, citing that the deal had not secured the necessary legal opinion to make it tax free for shareholders. The companies will be facing each other in Delaware's chancery court on Jun 20 to get declaratory judgment on tax issues and settle claims by each party that the other had breached their contract.
WILLIAMS COS Price
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.