Martin Midstream Partners Terminates Merger Deal

(Reuters) – Martin Midstream Partners announced on Thursday that it will terminate the previously agreed-upon $157 million merger deal with Martin Resource Management Corp (MRMC).

Martin Midstream (NASDAQ:MMLP), focused on storing and transporting fuels, had agreed in October to be acquired by its largest shareholder, MRMC. Under the deal, MRMC was to pay $4.02 per unit in cash for the common units it does not already own, following an initial offer in May to acquire Martin Midstream for $3.05 per unit.

In July, two hedge funds, Nut Tree Capital Management and Caspian Capital, made a competing bid and announced plans to rally shareholders against the MRMC deal. They claimed that the MRMC offer undervalued Martin Midstream and highlighted concerns regarding conflicts of interest in the acceptance process of the MRMC offer.

As a result, the unitholder meeting scheduled for December 30 to vote on the MRMC buyout has been cancelled.