Regency Energy Partners LP has announced it will acquire Southern Union Gathering Company LLC, the owner of Southern Union Gas Services Ltd., from Southern Union Company, a jointly owned affiliate of Energy Transfer Equity LP and Energy Transfer Partners LP. The $1.5 billion acquisition will expand Regency’s presence in the Permian Basin. The acquisition is expected to close in the second quarter of 2013, subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.

The transaction will include the purchase of a 5,600-mile gathering system and ...