Source: Wikimedia Commons According to Bloomberg, Williams Companies Inc (NYSE:WMB) rejected a $48 billion buyout offer from Energy Transfer Equity (NYSE:ETE). The buyout would have created a juggernaut in the midstream [pipelines, storage facilities, gathering systems, processing plants] space, but was dependent on Williams Companies dropping the purchase of all the units of Williams Partners LP (NYSE:WPZ) that Williams Companies doesn't already own. That deal was worth around $14 billion. For reference, Energy Transfer Equity owns a huge chunk of Energy Transfer Partners (NYSE:ETP) and Sunoco Logistics Partners (NYSE:SXL). Williams Companies management thought it would be best "to conduct a thorough evaluation of strategic alternatives", which in other words means it sees more value from growing internally by consolidating its own assets instead of forming a larger midstream focused company/MLP [depending on how the deal would ultimately go down]. We will have to see if Energy Transfer Equity decides to pursue a different deal instead in light of this rejection. To read more about the energy sector or to write your own thoughts on energy investing, click here. Disclosure: Callum Turcan, the author, does not own any of the companies mentioned above. Always do your own due diligence before investing.