Williams Partners LP and Access Midstream Partners LP agreed to merge in a transaction with a total value of $50 billion as part of a drive to become the leading natural gas infrastructure provider in North America.
The deal will create a company with 2015 adjusted EBITDA of about $5 billion and should be completed in early 2015, according to an Oct. 26 statement.
The merger follows a $6 billion accord in June when The Williams Cos. Inc., the fourth-largest U.S. pipeline company and owner of Williams Partners, bought control of Access from Global Infrastructure Partners II. Williams this year called a surge in domestic energy production and demand for new pipelines an “ongoing energy infrastructure super-cycle.”
Under the agreement, 0.86672 Access units will be exchanged for each Williams Partners unit, according to the statement. In June, Williams proposed an exchange of 0.85 Access units for each Williams Partners unit, plus $0.81 per unit to be paid by Access.
Alan Armstrong and Donald Chappel will be the merged partnership’s CEO and CFO, respectively, according to the statement.
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