Southcross Energy Partners LP terminated its planned merger with American Midstream Partners LP, citing what it called a failure of American Midstream to meet conditions under the merger agreement.
Southcross Holdings LP, Southcross Energy's parent, also terminated its contribution agreement with American Midstream, which was announced with the merger deal in 2017, alleging "a funding failure" by American Midstream, according to a July 30 news release. Southcross Holdings said it is eligible to receive a $17 million termination fee under the contribution agreement, which it plans to use to reimburse certain Southcross Energy transaction costs.
Southcross Energy unit holders recently voted to approve the merger with American Midstream.
The merger with Southcross was part of American Midstream's effort to transform into a fully integrated gathering, processing and transmission company and provide a full midstream value chain in the Eagle Ford Basin, the Southeast and the Gulf Coast.