Energy Transfer Partners LP agreed to buy all the publicly traded units in Regency Energy Partners LP, a pipeline company that it controls, in a deal that values the target at about $18 billion including debt.

The cash-and-stock deal offers Regency investors $26.89 a unit, a 13 percent premium based on the Jan. 23 closing price, the companies said in a joint statement today. Regency holders will get 0.4066 units of Energy Transfer plus a cash payment of 32 cents a unit. Energy Transfer Equity LP controls Regency through ownership of its general partner and already owns about 22 percent of the traded units, according to data compiled by Bloomberg.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.