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The MarkWest-MPLX Merger: A Done Deal or Open Competition? (Continued from Prior Part) Basics of the transaction
As we saw in the first part of this series, MPLX (MPLX) is buying MarkWest Energy Partners (MWE) in a cash and stock merger worth about $20 billion. MarkWest shareholders will receive $3.37 cash plus 1.09 shares of MPLX for each share of MarkWest. The merger is expected to close in the fourth quarter of 2015.
Management comments on the transaction
Gary R. Heminger, chief executive officer of MPLX, commented on the transaction. “Our strategic combination with MarkWest would result in a large-cap, diversified MLP with an exceptional growth profile,” He added, “This transaction creates a tremendous platform for the combined partnership to continue to grow distributable cash flow and creates significant long-term value for the unitholders.”
Heminger also said, “We are thrilled to be joining forces with the MarkWest team, which has built a sterling reputation for customer service and its ability to execute on strategic growth projects. Frank and his management team have built one of the premier MLPs in the market today. The success of this combination centers on sustainable growth. MarkWest’s employees and management remain fundamental to that growth going forward.”
Specific conditions
The following conditions need to be satisfied in order for the MarkWest-MPLX merger to close:
- MarkWest shareholder vote
- SEC (Securities and Exchange Commission) approval of joint proxy statement
- Hart–Scott–Rodino Antitrust Improvements Act filing
Non-solicitation agreement and breakup fee
MarkWest has a non-solicitation covenant with a fiduciary out. This means it’s not allowed to discuss merging with another company unless it receives a bona fide written proposal and the board of directors believes it could lead to a superior transaction. If MarkWest accepts another bid, it will owe MPLX $625 million.
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MarkWest Energy Partners LP
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CODE : MWE |
ISIN : US5707591005 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
MarkWest Energy est une société d’exploration minière et de pétrole basée aux Etats-Unis D'Amerique. MarkWest Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 11,1 milliards US$ (9,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 01 mai 2009 à 10,05 US$, et son plus haut niveau récent le 25 septembre 2015 à 48,00 US$. MarkWest Energy possède 231 560 000 actions en circulation. |