At a special meeting held today, unitholders of MarkWest Energy Partners LP (NYSE: MWE) approved a strategic combination with MPLX LP (NYSE: MPLX) by voting to approve the merger agreement dated July 11, as amended.
On Nov. 4, John M. Fox, the co-founder of MarkWest Hydrocarbon, former CEO, chairman and director of MarkWest Energy GP LLC, the general partner of MarkWest Energy Partner LP, and beneficial owner of 1,361,774 MarkWest common units, detailed in an open letter to the board of directors of MarkWest GP his opposition to the proposed merger.
Based on the voting results of today’s meeting, approximately 80% of the units voted at the special meeting were in favor of the merger agreement.
The transaction will result in MarkWest, the second-largest processor of natural gas in the US and largest processor and fractionator in the Marcellus and Utica shale plays, becoming a wholly owned subsidiary of MPLX, a crude oil and refined products logistics partnership sponsored by Marathon Petroleum Corp. (NYSE: MPC). The combination creates one of the largest master limited partnerships (MLPs) and is expected to generate a mid-20% compound annual distribution growth rate through 2019.
The transaction is subject to customary closing conditions and is expected to close Dec. 4.