Williams to acquire Transco in a $3 billion deal

Williams Cos. Inc., Tulsa, has signed a merger agreement with Transco Energy Inc., Houston, in a transaction valued at about $3 billion. The resulting company is expected to be the biggest U.S. natural gas pipeline in terms of throughput. The combined company also will be a more balanced natural gas pipeline system, with the two present companies contributing systems that do not overlap. Williams pipelines are concentrated in the U.S. West and Midwest, while Transco's are concentrated in the Gulf Coast, Mississippi Valley, and eastern U.S. After the merger, Williams will have access to all major U.S. markets, with Transco becoming a wholly owned subsidiary.