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Andeavor Logistics to buy Western Refining Logistics for $1.5 billion

Staff Writer | August 15, 2017
U.S. pipeline operator Andeavor Logistics said it would buy rival Western Refining Logistics for $1.5 billion.
Andeavor Logistics
Acquisition   Western Refining Logistics owns crude oil pipelines
Western Refining unitholders will receive 0.5233 Andeavor Logistics units for each Western Refining unit.

The deal values each Western Refining unit at $25.28, representing a premium of 6.4 percent to Western Refining Logistics' Friday closing price.

Andeavor, formerly known as Tesoro Corp, bought Western Refining for $4.1 billion in June. Tesoro also acquired a non-controlling stake in Western Refining Logistics as part of that deal.

El Paso, Texas-based Western Refining Logistics owns crude oil pipelines and gathering assets in the Permian Basin in West Texas and Southern New Mexico.

Andeavor Logistics also said it would issue 78 million of its units to parent Andeavor in exchange for the cancellation of its incentive distribution rights.