30 April 2012 13:00 [Source: ICIS news]
LONDON (ICIS)--US firm Energy Transfer Partners (ETP) has entered into an agreement to acquire US refiner Sunoco for around $5.3bn (€4.0bn), the two companies said on Monday.
Sunoco said the transaction will create one of the largest and most diversified energy partnerships in the country by expanding ETP’s geographic footprint and strengthening its presence in the transportation, terminalling and logistics of crude oil, natural gas liquids and refined products.
“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 ETP CEO Kelcy Warren.
“With this transaction, we make a major move in that direction, bringing our cash flow mix related to the combined enterprise’s pipeline businesses to approximately 70% natural gas and 30% heavier hydrocarbons,” he added.
Sunoco’s CEO, Brian Macdonald said the transaction will enable the company to become an important part of a diversified leader in the energy industry.
“ETP recognizes that the steady, ratable cash flows that our logistics and retail businesses generate are backed by great assets, deep expertise, and the potential for future growth,” he added.
The announcement comes a week after Sunoco said it had started discussions with private equity firm The Carlyle Group about a possible joint venture involving Sunoco’s 330,000 bbl/day ?xml:namespace>
Energy Transfer Partners is a publicly traded partnership owning and operating a diversified portfolio of energy assets in the US.
($1 = €0.76)
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