Williams-Energy Transfer Receives Merger Approval with Conditions
Williams Companies, Inc. WMB and Energy Transfer Equity LP 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.
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