Energy Transfer Partners (ETP) has agreed a $17billion deal to buy its affiliate Regency Energy Partners in the wake of lower crude prices.
According to reports both companies are structured as limited partnerships and are controlled by a third partnership, Energy Transfer Equity, which owns 21.7% of Regency and 8.7% of ETP.
The deal is structured as an exchange of units.
Mike Bradley, Regency’s chief executive, said in a statement that the market volatility had made it clear that Regency needed more “scale and diversification” to continue its growth.
Regency’s units have been valued at about $10.1billion and ETP will also take on about $6.8billion in debt and other liabilities.
The company operates plants, tanks and pipelines for processing, storing and transporting gas, oil and natural gas liquids.
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