U.S. pipeline operator Energy Transfer (
ET) - Get Report agreed to buy rival Enable Midstream Partners (
The deal value is about $7.2 billion including debt.
Under the terms Enable holders would receive about 0.86 Energy Transfer share for each of their units.
Energy Transfer shares closed on Tuesday at $6.96. Based on that close, 0.86 share would be valued at $5.99. Enable Midstream shares at last check were down 7.7% at $6.01.
Energy Transfer shares on Wednesday were trading off 1.4% at $6.86.
Additionally, each Enable Series A preferred share would be swapped for 0.027 Series G preferred unit of Energy Transfer.
And the transaction includes a $10 million cash payment to Enable s general partner.