: ETE targeted significant cash flow diversification and commercial opportunities across an expanded asset base, particularly in the Marcellus and Utica shale regions.
: The merger was contingent on a Section 721(a) tax opinion from counsel (Latham & Watkins). Due to the changing market, counsel became unable to certify the transaction as tax-free, providing ETE with a legal basis to terminate the deal.
: The merger would have created the world's largest energy infrastructure group, operating over 100,000 miles of oil and gas pipelines. energy transfer williams buyout
: Continues to operate as an independent major midstream entity, focusing on U.S. pipeline infrastructure for "pipes and power".
: Falling oil and natural gas prices in late 2015 and early 2016 made the high cash component of the deal ($6.05 billion) increasingly burdensome for Energy Transfer. : ETE targeted significant cash flow diversification and
: The deal was designed to move toward a C-Corp structure (Energy Transfer Corp LP) as Master Limited Partnerships (MLPs) were falling out of favor with investors. The Collapse and Termination
The proposed $33–$37.7 billion buyout of by Energy Transfer Equity, L.P. (ETE) was one of the most high-profile failed mergers in the energy sector. Announced in September 2015, the deal collapsed in June 2016 following a sharp downturn in energy prices and a protracted legal battle over tax technicalities. Deal Overview & Strategic Rationale : The merger would have created the world's
ETE and Williams Receive FTC Clearance for Proposed Acquisition