$6.4 Billion Tesoro Acquisition of Western Refining Announced

November 22nd, 2016 by Fiedler Group

Tesoro Corporation and Western Refining, Inc. have announced a definitive agreement where Tesoro will acquire Texas based Western. 

The transaction, which has been unanimously approved by the boards of directors of both companies, is expected to close in the first half of 2017.

With the acquisition, Tesoro will add Western’s refineries in Texas, New Mexico and Minnesota to their existing portfolio of refineries which includes operations in California, Washington, Alaska, Utah and North Dakota.

In total, these refineries are expected to provide Tesoro with a refining capacity of over 1.1 million barrels per day.

The combined retail operations will comprise over 3,000 branded retail stations operating under a variety of brands including ARCO®, Shell®, Exxon®, Mobil®, SuperAmerica®, Giant and Tesoro®.

Commenting on the acquisition, Greg Goff, Chairman and CEO of Tesoro stated  “The acquisition of Western further strengthens our integrated business  model and extends our portfolio into attractive and growing markets.

As a leading integrated refining, marketing and logistics company, this transformative acquisition drives value through a combination of access to advantaged crude oil, a strong, multi-brand marketing and convenience store portfolio and a robust platform for logistics growth, all of which will allow us to continue to create shareholder value.”

In addition to its refinery network, Western also operates retail service stations and convenience stores in Arizona, Colorado, Minnesota, New Mexico, Texas, and Wisconsin – operating primarily through the Giant, Howdy’s, and SuperAmerica brands.

Commenting on the benefit of the agreement Paul Foster, Executive Chairman of Western Refining noted “This strategic combination provides our shareholders with the opportunity to participate in the tremendous future growth prospects and synergies of the combined company. Joining forces with Tesoro, a company that shares our integrated business model strategy, will enable us to further leverage our capabilities in refining, marketing and logistics operations and allow our talented team to work on a growing number of exciting opportunities. We have tremendous respect for the Tesoro team and are excited to be a part of a larger and more diverse organization to support our continued growth.”

Additional information regarding this 6.4 billion transaction can be found on the Tesoro Corporation website.