Energy Transfer Partners to buy Sunoco in $5.3 billlion deal
Houston, TX, United States (AHN) – Dallas based Energy Transfer Partners LP, announced Monday it was buying Sunoco Inc for $5.3 billion.
Under the terms of the deal, Sunocoshareholders will receive about $50.13 a share: $25 in cash and 0.5246 common units of Energy Transfer.
Energy Transfer is paying a 23 percent premium over Sunoco’s closing prior prior to Monday’s announcement.
The transaction will assist Energy Transfer Partners goal of diversifying the company’s pipeline network and the products it ships.
The acquisition gives Energy Transfer Partners 4,900 Sunoco branded retail fueling station in the U.S., in addition to its 32.4 percent share of Sunoco Logistics Partners LP’s common units, enabling Energy Partner to expand its oil pipelines.
In September, Sunoco hired Credit Suisse to explore strategic alternatives, including a possible sale.
Sunoco, an owner of oil refineries since 1895, said it planned to exit that business after posting a $1.7 billion loss in 2011.
Shares of Sunoco soared on the news, rising nearly 20 percent to $48.88.