Energy Transfer Partners (ETP), L.P., based in Dallas, has acquired Sunoco Inc., based in Philadelphia, in $5.3 Billion Transaction, which is among the Largest Partnerships in the U.S. in the field of oil and natural gas industry.
Energy Transfer will give shareholders of Sunoco $25 in cash and 0.52 of an Energy Transfer share for each of their shares – i.e. 50% cash and 50% ETP common units – resulting in the $50.13 a share for total value of the cash-and-share deal. This value is 29% above the Sunoco’s closing price on Friday.
[hana-code-insert name=’StumbleUpon’ /][hana-code-insert name=’Reddit’ /]“This transaction, which will be immediately accretive, represents the next step in Energy Transfer Partners’ transformation into a more diversified enterprise with an integrated and expanded footprint,” said Kelcy Warren, ETP’s chief executive officer and chairman of the board of directors.
“This transaction will enable Sunoco’s businesses to realize their full potential by becoming an important part of a diversified leader in the energy industry,” said Brian P. MacDonald, Sunoco’s president and chief executive officer. “In addition, it delivers an attractive premium to our shareholders, while enabling them to participate in the future growth of the business. The combination with ETP provides substantial future value-creation opportunities for Sunoco shareholders and ETP unitholders alike.”
Sunoco operates 4900 gas stations in the United States. According to the Dallas-based company, once the deal will be completed it would result in $70 million of annual cost savings. The deal is expected to be closed by the end of the year.
ETP’s exclusive financial advisor is Wells Fargo Securities, LLC, while Latham & Watkins LLP, Bingham McCutchen LLP and Morris, Nichols Arsht and Tunnell LLP acted as legal counsel.
Sunoco has been advised by Credit Suisse Securities (USA) LLC, which acted as exclusive financial advisor, and Wachtell, Lipton, Rosen & Katz acted as legal counsel.