Energy Transfer Equity to Acquire Southern Union - The Deal will Allow ETE Access to a Larger Midstream Platform with Expanded Geographical Reach - Deal Analysis from GlobalData


Energy Transfer Equity, L.P. (ETE), a midstream energy company, entered into an amended and restated agreement to acquire Southern Union Company (SUG), a company engaged in the transportation, storage, gathering, processing and distribution of natural gas, for a purchase consideration of $8.9 billion. The company will fund the acquisition cost, through the payment of $5.1 billion in cash and the issuance of ETE common units. The transaction is expected to close in Q1 2012, subject to SUG stockholder approval and approvals from regulatory authorities. The transaction implies a deal value of $1.03 per cubic feet of daily pipeline throughput capacity, $81.65 per thousand cubic feet (Mcf) of natural gas installed storage capacity and $17,800 per daily Mcf of natural gas processing capacity.


- Rationale behind Energy Tranfer Equity acquiring Southern Union Company,
- Strategic Benefit for the companies involved,
- Geography covered -The US

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