12 November 2013 17:56 [Source: ICIS news]
HOUSTON (ICIS)--Western Refining has acquired ACON Investments' and TPG's ownership interest in Northern Tier Energy for $775m (€581m), the US-based company announced on Tuesday.
Western now owns the general partner and a 38.7% limited partnership interest in Northern Tier Energy, which has a 89,500 bbl/day refinery in Saint Paul Park, Minnesota, as well as pipeline access to Bakken shale and Canadian crude oil.
Northern Tier Energy also has a 17% interest in a 455,000 bbl/day crude oil pipeline, as well as product terminals, storage tanks, rail facilities, Mississippi river dockage and retail assets.
The acquisition will expand Western's refining capacity to 242,500 bbl/day and give it pipeline access to crude oil sources in the Bakken, Permian, San Juan and western Canada regions. Western's platform will also include wholesale distribution, retail convenience stores and crude oil and refined product logistics assets.
Along with the newly acquired Saint Paul Park facility, Western operates refineries in El Paso, Texas, and Gallup, New Mexico.
"This investment further enhances our strategic goal of expanding our refining presence in areas with direct pipeline access to cost-advantaged crude oil resources," said Jeff Stevens, CEO of Western, which is based in El Paso, Texas. "By adding these strategically aligned assets to our business portfolio, this transaction adds scale to our business and diversifies our operations by adding a new geographic region to our refining platform."
($1 = €0.75)
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