The biggest deal in our table is Kinder Morgan Inc.’s (NYSE: KMI) consolidation of the master limited partnerships (MLP) under its purview. See Our Take on the Kinder Morgan Mega-Deal and the Aug. 18 Utility Roundup.
Here’s a refresher on the offer:
Combining these entities into a single C corporation simplifies the organizational structure, while eliminating the MLP’s burdensome incentive distribution rights and reducing its cost of capital.
In short, this transaction effectively expands Kinder Morgan Inc.’s pipeline of organic-growth opportunities, improves internal rates of return on announced projects and makes it easier for the firm to pursue acquisitions in a highly competitive environment.
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