US: Sunoco Logistics to acquire Energy Transfer Partners in $20 billion combo

The proposed merger between Sunoco Logistics and Energy Transfer Partners might be taking place to help secure dividends for ETP’s own Energy Transfer.

“It does not appear really based on the Trump administration right now or what the expectations are in terms of regulation,” Faber said on “Squawk on the Street.” “It is more about the ability of ETE, Energy Transfer, to pay a dividend to its holders.”

Earlier Monday, CNBC’s Jim Cramer discussing with Faber said that perhaps the proposed merger might be the first “Trump deal.”

In his election campaign, President-elect Donald Trump vowed to roll back on regulations and unleash “a treasure trove of untapped energy”in the United States. In August, Trump said lifting restrictions on oil and gas would increase gross domestic product by more than $127 billion and add about 500,000 jobs.

“Pipelines are going to be winners under Trump,” Cramer said on “Squawk on the Street.” “Energy Transfer’s been trying to build that national network of natural gas. This is a very important deal and it’s out of nowhere, and this group is finally going to break out.”

Full Content: CNBC

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