Energy Transfer Partners, L.P. (NYSE: ETP) and Regency Energy Partners LP (NYSE: RGP) have announced that they have entered into a definitive merger agreement.  As noted in the company news release, below, the merger will be a unit-for-unit transaction, plus a one-time cash payment to Regency unit holders, that collectively implies a value  for Regency of approximately $18.0 billion, including the assumption of net debt and other liabilities of $6.8 billion.  The transaction is expected to close in the second quarter of 2015.

Latham & Watkins LLP advised ETP on the transaction with a Houston-based corporate team led by partners Ryan Maierson, Debbie Yee and William Finnegan with associates Chad MacDonald and Emily Korinek.  Advice was also provided by Washington, D.C. partners Michael Egge and Jason Cruise on antitrust, Washington, D.C. partner Adam Kestenbaum on employee benefits, Houston partner Tim Fenn on tax, Washington, D.C. partner Ken Simon on regulatory matters and Houston partner Joel Mack on environmental matters.