OREANDA-NEWS. Energy Transfer Equity (ETE) will buy Williams for $37.7bn, creating one of the largest pipeline infrastructure companies in the world.

The transaction was approved by the board of directors of both companies.

Williams in June rejected an unsolicited takeover plan from ETE, saying that it significantly undervalued the company and would not deliver the same value as other growth initiatives. ETE responded by threatening a hostile takeover if the two companies couldn't negotiate a deal.

Since then, the companies engaged in merger discussions.

Williams said it also terminated an agreement to buy out its affiliated master limited partnership.

ETE is part of the Energy Transfer group of companies, which owns about 71,000 miles of natural gas, NGLs, refined products and crude pipelines in North America.

Williams owns a 66pc interest in Williams Partners, which owns and operates more than 33,000 miles of pipelines. Together, Williams Partners and Energy Transfer would operate more pipelines than Kinder Morgan, which owns or operates about 84,000 miles of pipelines.