US refiners Western, Giant to merge in $1.5bn deal

28 August 2006 20:49  [Source: ICIS news]

HOUSTON (ICIS news)--Western Refining and Giant Industries said on Monday that Western would acquire Giant for $1.5bn, creating the fourth largest publicly-traded independent refiner and marketer in the US.

The deal would give Western will total refining capacity of 216,000 bbl/day, combining its 117,000 bbl/day El Paso, Texas refinery with Giant's 62,000 bbl/day refinery in Yorktown, Virginia and two northern New Mexico refineries with a combined capacity of 37,000 bbl/day.

Western said the merger would double its ability to process lower-cost sour and heavy crude from 12% of capacity to almost 25%. That total will reach 46% when it completes a previously announced expansion the El Paso plant.

The transaction, which is subject to approval by Giant shareholders federal regulators, is expected to close in the fourth quarter of 2006.

Western is based in El Paso and Giants is headquartered in Scottsdale, Arizona.

By: Brian Balboa
+1 713 525 2653

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