Energy Transfer sells propane operations to AmeriGas for $2.9 bn
18 Oct 2011
US natural-gas pipeline operator Energy Transfer Partners L.P. (ETP) yesterday sold its propane operations to AmeriGas Partners L.P. for $2.9 billion in order to looks to focus on its pipeline assets.
The deal comes a day after Kinder Morgan Inc struck a $38 billion deal including debt to acquire rival El Paso Corp, to create the largest natural gas pipeline operator in North America. (See: Kinder Morgan may acquire El Paso for $21.1 bn, create $94-bn)
ETP's move comes in the middle of a takeover battle with Williams Cos for pipeline operator Southern Union. (See: Energy Transfer again outbids Williams for Southern Union)
Under the deal, Dallas-based ETP will sell its propane operations, comprising Heritage Operating, L P and Titan Energy Partners, L P, to AmeriGas for approximately $2.9 billion.
ETP will receive $1.5 billion in cash and approximately $1.3 billion of AmeriGas common shares.
AmeriGas has also agreed to assume $71 million Heritage debt.
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