Dallas-based Energy Transfer Equity, owner of the Lake Charles LNG project, said on Wednesday it has terminated its multi-billion dollar merger deal with pipeline operator Williams.
The Delaware Court of Chancery ruled on Friday that Energy Transfer Equity is “contractually entitled” to terminate the nearly $33 billion deal to buy the pipeline operator.
Energy Transfer’s counsel, Latham & Watkins, has advised the company that it was unable to deliver a required tax opinion by June 28, the date specified in the merger deal.
“Consistent with its rights and obligations under the merger agreement, ETE subsequently provided written notice terminating the merger agreement due to failure of conditions under the merger agreement, including Latham’s inability to deliver the required tax opinion,” Energy Transfer said in its statement.
Energy Transfer said earlier the combination would create “the third largest energy franchise in North America by combining two of the largest diversified MLPs, the second largest crude and logistics MLP, a fast-growing retail fuel MLP and an attractive LNG export opportunity.”
Williams on Monday filed papers commencing an appeal in the Delaware Supreme Court of the Delaware Court of Chancery’s ruling.
The company said in a statement issued after the ruling it remains “ready, willing and able to close the merger” and will “enforce its rights” under the terms of its agreement if Energy Transfer attempts to terminate the deal.
LNG World News Staff