US Enterprise Products bids to merge with Duncan Energy Partners

23 February 2011 14:35  [Source: ICIS news]

TORONTO (ICIS)--Enterprise Products Partners has made an offer to acquire all remaining outstanding units of Duncan Energy Partners, the US supplier of midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and petrochemicals said on Wednesday.

The deal between the two Houston-based midstream energy firms would be structured as a merger, Enterprise said.

Enterprise was offering 0.9545 of Enterprise common units for each outstanding publicly-held Duncan common unit, valuing Duncan at $42.00/unit, it said. Duncan closed at $32.56/unit on Tuesday in New York.

"We believe this proposal should be attractive to Duncan Energy Partners investors who would participate in the future growth of Enterprise, which has a backlog of pending capital projects and a more diverse existing asset base," said Enterprise CEO Michael Creel.

"In addition, public unitholders of Duncan Energy Partners would receive a substantial premium over the current trading price, a substantial distribution increase and a more liquid security," said Creel.

In a separate statement, Duncan said it had received the offer and would begin a review process.

Duncan added that Enterprise already owned 100% of the general partner of Duncan Energy Partners and about 58% of the outstanding common units of Duncan Energy Partners.

Like Enterprise, Duncan is a provider of midstream energy services, including gathering, transportation, marketing and storage of natural gas, NGL fractionation, and petrochemical transportation and storage.

To discuss issues facing the chemical industry go to ICIS connect

By: Stefan Baumgarten
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index

Related Articles