Tesoro Corp., an oil refiner based in San Antonio, Texas, agreed to buy Western Refining Inc. in a deal valued at $6.4 billion.
Tesoro will acquire Western Refining at an implied price of $37.30 per Western share in a stock transaction, representing an equity value of $4.1 billion, the companies said in a joint statement Thursday. The deal also includes the assumption of approximately $1.7 billion of Western’s net debt and the $605 million market value of a non-controlling interest in Western Refining Logistics.
The deal “creates a premier, highly integrated and geographically diversified refining, marketing and logistics company,” according to the statement. The combined companies will have a refining system with over 1.1 million barrels a day of capacity with opportunities for growth in logistics, it said.
The purchase price represents a premium of 22.3 percent to the closing price of Western’s stock on the day prior to announcement, according to the statement.
The transaction is expected to close in the first half of 2017 and is subject to customary closing conditions, including approval by the shareholders of both companies and the receipt of regulatory approval, the companies said.
To contact the reporter on this story: James Herron in London at jherron9@bloo
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