Williams Cos. Inc. (WMB) said Sept. 28 it agreed to be acquired by Energy Transfer Equity LP (ETE) in a stock-and-cash deal valued at about $37.7 billion, including debt, three months after it rebuffed Energy Transfer's $53.1 billion offer.
Energy Transfer's offer of $43.50 per share represents a premium of 4.6% to Williams' close on Sept. 25.
Williams, which had rejected the earlier offer in June saying that it significantly undervalued the company, has lost nearly a third of its market value since then.
Williams shares fell 2% to $40.61 in premarket trading on Sept. 28.
Williams stockholders electing to receive stock will get 1.8716 Energy Transfer shares for each share held, the companies said in a joint statement.
Energy Transfer had previously said that its offer was contingent on the termination of Williams' pending acquisition of natural gas MLP Williams Partners (WPZ).
Williams Partners said on Sept. 28 it would terminate the deal and would receive $428 million in termination fee from Williams.
Williams operates natural gas pipelines spanning the Gulf of Mexico to the Canadian oil sands, while Energy Transfer operates natural gas, crude and refined product pipelines.
Recommended Reading
Classic Rock, New Wells: Permian Conventional Zones Gain Momentum
2024-12-02 - Spurned or simply ignored by the big publics, the Permian Basin’s conventional zones—the Central Basin Platform, Northwest Shelf and Eastern Shelf—remain playgrounds for independent producers.
First Helium Plans Drilling of Two Oil Targets in Alberta
2024-11-29 - First Helium Inc. has identified 10 other sites in the Leduc formation.
DNO Discovers Oil in New Play Offshore Norway
2024-12-02 - DNO ASA estimated gross recoverable resources in the range of 27 MMboe to 57 MMboe.
Freshly Public New Era Touts Net-Zero NatGas Permian Data Centers
2024-12-11 - New Era Helium and Sharon AI have signed a letter of intent for a joint venture to develop and operate a 250-megawatt data center in the Permian Basin.
DNO Makes Another Norwegian North Sea Discovery
2024-12-17 - DNO ASA estimated gross recoverable resources in the range of 2 million to 13 million barrels of oil equivalent at its discovery on the Ringand prospect in the North Sea.