Natural gas companies in $4.2b deal
NEW YORK — Energy Transfer Equity LP said yesterday that it has agreed to acquire natural gas company Southern Union Co. for about $4.2 billion, creating one of the country’s largest natural gas pipeline companies.
The combined company would have more than 44,000 miles of natural gas pipelines and about 30.7 billion cubic feet per day of natural gas transportation capacity.
It would be the second major acquisition for Dallas-based Energy Transfer in the past few months. In March, the company’s subsidiaries formed a joint venture to acquire LDH Energy Asset Holdings LLC, a Wilton, Conn. , energy marketing and transportation company, for about $1.93 billion in cash.
Southern Union climbed $4.95 to $33.21. Energy Transfer gained $3.49 to $45.96.
Under the agreement, Southern Union will become a subsidiary of Energy Transfer. Energy Transfer will assume $3.7 billion of Southern Union’s debt.