Kinder Morgan Energy Partners LP (NYSE: KMP) and Copano Energy LLC (NASDAQ: CPNO) have reached a definitive agreement whereby KMP will acquire all of Copano’s outstanding units for $5 billion.

The transaction has been approved by the boards of directors of both companies. It will be a 100% unit for unit transaction with an exchange ratio of .4563 KMP units per Copano unit. The consideration to be received by Copano unitholders is valued at $40.91 per Copano common unit based on KMP’s closing price as of Jan. 29, representing a ...