U.S. pipeline operator Williams Companies on Wednesday denied extending any offer to oil and gas transportation firm Targa Resources, after a report said the latter had rebuffed a takeover interest from the former.
Bloomberg News reported earlier on Wednesday that the Houston-based natural gas pipeline operator viewed an offer from Williams as undervaluing the company and had “rebuffed” the informal takeover interest in recent months, citing people with knowledge of the matter.
“To be clear, Williams has not extended any offer to Targa Resources, nor are there any deliberations to do so,” a Williams spokesperson told Reuters in an emailed statement.
The U.S. pipeline and storage sector is seen as ripe for deals following increased consolidation among oil and gas producers.
Last month, pipeline operator ONEOK said it would buy midstream assets in deals worth $5.9 billion from Global Infrastructure Partners.
Targa Resources has a market valuation of $32.84 billion, per LSEG data, while Williams Companies, which runs the interstate Transco and Northwest pipelines, stands higher at $55.52 billion.
(Reporting by Seher Dareen in Bengaluru; Editing by Shinjini Ganguli)