Crosstex Energy-Devon Energy Business Combination Gets U.S. Regulatory Approval

(RTTNews) - Crosstex Energy Inc. (XTXI) and Crosstex Energy, L.P. (XTEX) announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended or "HSR", has expired in connection with the previously announced combination of substantially all of the U.S. midstream assets owned by Independent oil and gas producer Devon Energy Corp. (DVN) with Crosstex's assets to form a new midstream business. Expiration of the HSR waiting period satisfied one of the conditions to the closing of the business combination.

The business combination is expected to close in the first quarter of 2014, subject to certain other conditions set forth in the merger agreement and contribution agreement, including approval by stockholders of Crosstex Energy, Inc. and other customary closing conditions.

In October, Devon Energy Corp. and Crosstex Energy Inc. had agreed to substantially combine all of their midstream businesses in the U.S. to form a new midstream business that would be named prior to closure of the deal. The boards of directors of both the companies had unanimously approved the deal.

Devon then said that the new business would consist of two publicly traded entities: the Master Limited Partnership and a General Partner entity.

Upon closing of the deal, the pro forma ownership of the new General Partner entity will be about 70 percent Devon Energy, 30 percent current Crosstex Energy public stockholders.

Meanwhile, the pro forma ownership of the Master Limited Partnership entity will be about 53 percent Devon Energy, 40 percent current Crosstex Energy, L.P. public unitholders, and 7 percent the new General Partner entity.