ETE to Acquire Southern Union for $7.9bn

Energy Transfer Equity (ETE) has entered into a definitive merger agreement to acquire Southern Union (SUG) for total value of $7.9bn, including about $3.7bn of existing SUG debt.

The acquisition will provide ETE with direct ownership of attractive assets that are complementary to the assets owned and operated by ETE’s two master limited partnership (MLP) subsidiaries, Energy Transfer Partners and Regency Energy Partners.

The total assets of ETE, along with SUG will include more than 44,000 miles of natural gas pipelines and about 30.7bcfpd of natural gas transportation capacity.

ETE chairman Kelcy Warren said the acquisition would give the company a larger, more competitive interstate and midstream platform and will add significant demand-driven pipeline assets to the energy transfer portfolio.