Energy Transfer Equity Terminates Merger Agreement With Williams Companies

(RTTNews) - Energy Transfer Equity L.P. (ETE) said that it has terminated its merger agreement with The Williams Companies Inc. (WMB) effective June 29, 2016.

As previously announced, on June 24, 2016, the Delaware Court of Chancery issued an opinion finding that ETE is contractually entitled to terminate the merger agreement with Williams in the event ETE's counsel Latham & Watkins LLP were unable to deliver a required tax opinion prior to the June 28, 2016, outside date in the merger agreement.

Latham advised ETE that it was unable to deliver the opinion as of the outside date. 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, as well as the other bases detailed in ETE's filings in the Delaware lawsuit.

Williams has appealed the decision by the Delaware Court of Chancery to the Delaware Supreme Court.

In September 2015, Energy infrastructure company Energy Transfer Equity, L.P. had agreed to acquire peer Williams Companies in a deal valued at about $37.7 billion, including the assumption of debt and other liabilities.