Back in 2015, Energy Transfer Equity LP (ETE) took a major step consolidating a $33 billion takeover of Williams Cos. (Williams). It was being considered as a major deal, which could create one of North America’s largest energy franchises. However, on June 29, ETE revealed that their merger agreement with Williams has been terminated after the deal has not been declared tax free by the ETE counsel.

On June 24, 2016, the Delaware Court of Chancery ruled that ETE could terminate its bid to buy Williams if they fail to get a tax opinion from their counsel before June 28, 2016. ETE’s counsel Latham & Watkins LLP (“Latham”) did not submit the required tax opinion prior to the outside date in the merger agreement, which was June 28, 2016, and the pipeline operator was allowed to terminate the deal without penalty.

According to ETE, a written notice has been provided terminating the deal after 18 months of negotiations. Williams now has to look out for other options and carry on as a standalone organization.

Williams accused ETE that the latter is trying to end the deal and both the companies have sued each other. However, Williams has appealed to the Delaware Supreme Court challenging the Delaware Court of Chancery’s decision.