Kinder Morgan to buy El Paso Corp. for $20.7B

By the Associated Press | October 18, 2011 | 9:35 PM EDT

HOUSTON (AP) — Kinder Morgan says it will buy El Paso Corp. in a cash and stock deal worth about $20.7 billion.

Kinder Morgan Inc., a Houston pipeline company, says the deal will create the largest independent transporter of petroleum products and largest natural gas pipeline network in the country.

The companies value the deal at $26.87 per El Paso share. Based on its about 770.25 million outstanding shares, the deal is worth about $20.7 billion.

The deal is expected to close next year and is subject to regulatory approval.

The boards of both companies have approved the deal.