Energy Transfer Equity (ETE) has entered an amended merger agreement to acquire Southern Union for $8.9bn, including $5.1bn in cash and ETE common units.
ETE secured $3.3bn from Credit Suisse to fund the cash consideration and also agreed to divest businesses to ensure the transaction will receive federal anti-trust approvals on closing in 2012.
In another deal, ETE, through Energy Transfer Partners (ETP), will acquire Southern Union's 50% interest in Citrus Corp for $1.9bn in cash.
Citrus Corp is a 5,500 mile gas transmission system jointly owned by Southern Union and El Paso Corporation.
The Citrus Corp stake sale is subject to the closing of ETE's acquisition of Southern Union.
ETE has also granted ETP a right of first offer for the disposition of Southern Union subsidiary Southern Union Gas Services, which owns and operates a natural gas gathering and processing system serving the Permian Basin in West Texas and New Mexico, US.
Energy Transfer Partners and ETE are subsidiaries of US-based energy company Energy Transfer.