ETE created a new entity, Energy Transfer Corp LP (ETC) , to serve as the acquiring vehicle.
Williams shareholders were offered a combination of ETC common shares and cash ($6.05 billion in aggregate). energy transfer williams buyout
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). ETE created a new entity, Energy Transfer Corp
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 The event is widely studied as a case
The acquisition was highly prized for Williams' 10,000-mile Transco natural gas network, a major artery connecting Texas to the Northeast.
The merger was terminated in June 2016 due to several critical factors:
Energy stocks and oil prices collapsed during the negotiation period, making the deal significantly less attractive to ETE.