As a copywriter with experience in SEO, I understand the importance of keeping up with the latest news and trends to produce high-quality content that resonates with readers. In this article, we`ll take a closer look at the recent merger agreement between Tallgrass Energy LP and Blackstone Infrastructure Partners, and what it means for the energy industry.
On January 22nd, 2019, Tallgrass Energy LP (NYSE: TGE) and Blackstone Infrastructure Partners announced a definitive merger agreement, in which Blackstone would acquire all of the outstanding Class A shares of Tallgrass for $22.45 per share in cash, representing a premium of approximately 35% over Tallgrass`s closing price on January 18th.
Tallgrass, based in Leawood, Kansas, is an energy infrastructure company that owns and operates natural gas pipelines, crude oil pipelines, and storage facilities throughout the United States. The company`s assets include the Rockies Express Pipeline, a 1,712-mile pipeline that transports natural gas from Colorado to Ohio, and the Pony Express Pipeline, which transports crude oil from Wyoming to Oklahoma.
Blackstone Infrastructure Partners, a subsidiary of Blackstone Group LP (NYSE: BX), is a global investment firm that specializes in infrastructure investments, with a focus on midstream energy assets such as pipelines and storage facilities.
According to the terms of the merger agreement, Tallgrass shareholders will receive $22.45 in cash for each share of Class A common stock they own, which represents a premium of approximately 35% over the company`s closing price on January 18th. The transaction is expected to close in the second quarter of 2019, subject to approval by Tallgrass shareholders and regulatory approvals.
The merger agreement between Tallgrass and Blackstone is seen as a positive development for the energy industry, as it will help to expand the reach and capabilities of both companies. Blackstone has a strong track record of successfully investing in energy infrastructure assets, while Tallgrass has a solid reputation for operating and maintaining pipelines and storage facilities.
In a press release announcing the merger agreement, Tallgrass CEO David G. Dehaemers Jr. said, «This transaction is a testament to the strength of our business and the quality of our assets. We are excited to work with Blackstone to continue to grow and invest in our business, while providing our customers with the safe, reliable, and efficient service they have come to expect from us.»
Overall, the Tallgrass-Blackstone merger agreement is a significant development in the energy industry, as it demonstrates the ongoing consolidation and optimization of midstream energy assets. As the energy industry continues to evolve, it is essential for companies to stay ahead of the curve and look for new ways to expand and improve their operations. The merger between Tallgrass and Blackstone is an excellent example of this trend and marks an exciting new chapter in the history of both companies.