Energy Transfer Equity, Williams Companies To Combine In a $37.7 Billion Deal

Energy Transfer Equity L.P. announced a deal to acquire Williams Companies in a deal valued at $37.7 billion. Under terms of the deal, an Energy Transfer affiliate, Energy Transfer Corp., will buy Williams at an implied price of $43.50 a share in cash and stock, which represents a 4.6% premium to Friday's closing price. Energy Transfer Corp. will be publicly traded on the NYSE under the symbol "ETC." Energy Transfer Equity said it anticipates commercial synergies to be more than $2 billion in earnings before interest, taxes, depreciation and amortization by 2020, and up to $400 million in additional cost savings. The deal comes as Williams Partners L.P. and Williams said they were terminating their previously-announced merger agreement, leading to Williams paying Williams Partners a $428 million termination fee. Williams Companies stock has lost 27% over the past three months, while Energy Transfer shares have dropped 29% and the S&P 500 has slipped 8.1%.