DALLAS ( TheStreet) -- Energy Transfer Equity ( ETE) agreed to buy Southern Union ( SUG) for $7.9 billion, including about $3.7 billion of Southern Union debt. The acquisition will create "the premier group of integrated midstream companies in the United States natural gas industry," the companies said in a press release. Southern Union shareholders will exchange their common shares for newly issued Series B Units of ETE with a value of $33 a share, or about $4.2 billion. The price is a 17% premium over Southern Union's $28.26 closing price on Wednesday. Energy Transfer said the acquisition would complement its two master limited partnership units Energy Transfer Partners ( ETP) and Regency Energy Partners ( RGNC). -- Written by Joseph Woelfel >To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: email@example.com.