© 2015 The Texas Lawbook.
By Natalie Posgate
(July 13) – Ohio-based MPLX and its sponsor, Marathon Petroleum Corporation announced Monday their plans to purchase Denver-based master limited partnership, MarkWest Energy Partners.
The transaction, which is valued at $20 billion and includes about $4 billion of debt, will create the fourth-largest MLP based on a market capitalization of $21 billion, the companies said in a joint statement.
MPLX turned to a primarily Texas-based team from Jones Day led by Houston partner Jeff Schlegel to handle its end of the transaction. Schlegel received assistance from Houston partners Joanne Bush, Scott Fletcher and Jason Leif; Dallas partners Todd Wallace, Louis Jenull and Karen Currie; Houston associates David Stringer, Allan Kirk, Kit Rockhill, Ahmed Sidik, Rebecca Thornhill, Mosby Perrow, Isaac Griesbaum, Colin McGee; and Dallas associate Brian Wilson.
Last year, Schlegel and Stringer led a Jones Day team that advised Marathon on its $2.87 billion acquisition of Hess Corporation’s retail business.
MarkWest turned to New York law firm Cravath, Swaine & Moore to handle its corporate work but hired Houston partner Ryan Carney of Vinson & Elkins to advise on tax matters. He received assistance from associate Laura Gieseke
The unit-for-unit transaction is expected to be tax-free and will include a $675 million cash contribution from Marathon. The deal completion is subject to MarkWest shareholders as well as customary closing conditions and regulatory approvals and is expected to close this year in the fourth quarter.
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