Enterprise Products Partners recently made an offer to buy Williams Companies but was rejected in its attempt to create an $80 billion energy giant, the Financial Times reported Thursday.
The proposed buyout comes just weeks after the failed merger of Williams and Energy Transfer Partners. Energy Transfer backed out of the planned $33 billion sale for Williams claiming its uncertainty about whether the transaction would be tax free, a mandatory condition to the transaction.
The failed buyout with Energy Transfer caused an upheaval in Williams’ boardroom as six of the company’s 13 directors resigned when Williams’ CEO, Alan Armstrong, would not step down.
The Financial Times reports that a deal with Williams Companies would allow Enterprise Products to cut costs and reshape its pipeline portfolio in the current oil and gas industry downturn.
The structure of the offer made by Enterprise Products is currently unknown, but sources report that Enterprise Products is still interested in the deal and may make another offer.