TEPPCO Unitholders Approve Merger

Recently, the unitholders of TEPPCO Partners L.P. (TPP) approved the proposed merger with Enterprise Products Partners L.P. (EPD - Analyst Report). This merger will create the nation’s largest publicly traded energy partnership with an enterprise value of approximately $30 billion. 

Of the votes cast, approximately 97% of TEPPCO units were in favor of the merger, representing about 71% of TEPPCO’s total outstanding units. Also, approximately 96% of the unaffiliated TEPPCO unitholders have approved the merger. As per the merger agreement, TEPPCO unitholders will receive 1.24 Enterprise common units for each TEPPCO unit owned at the effective time of the merger. 

TEPPCO unitholders have recognized the benefits and potential growth opportunities that will result by combining the complementary strengths of these two successful partnerships. The partnership believes that this merger would create improved access to financial resources, resulting in distribution increases for investors. 

Enterprise has declared that the TEPPCO unitholder vote represents the final step in the process. 

On Jun 29, Enterprise Products Partners and Enterprise GP Holdings L.P. (EPE - Snapshot Report) announced a definitive agreement to merge with TEPPCO Partners along with TEPPCO’s general partner. The combined partnership will operate under the “Enterprise” name and trade under the “EPD” ticker symbol.