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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 $625 million.
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MarkWest Energy Partners LP
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CODE : MWE |
ISIN : US5707591005 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
MarkWest Energy is a and oil exploration company based in United states of america. MarkWest Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 11.1 billions as of today (€ 9.9 billions). Its stock quote reached its lowest recent point on May 01, 2009 at US$ 10.05, and its highest recent level on September 25, 2015 at US$ 48.00. MarkWest Energy has 231 560 000 shares outstanding. |