Linus Unah – Fourth Estate Contributor
San Antonio, TX, United States (4E) – U.S. independent refiner Tesoro Corp has announced that it has completed the acquisition of Western Refining Inc. for a total consideration of about $5.8 billion.
Tesoro and Western first announced Tesoro’s expected acquisition of Western last November, with the combination expected to bring together refining, marketing and logistics businesses in the U.S.
Upon completion, San Antonio, Texas-based Tesoro said it would change its name to Andeavor, while
Tesoro Logistics LP will change its name to Andeavor Logistics effective from Aug. 1. Andeavor is expected to become a premier refining, marketing and logistics company.
“We are excited about the continued transformation of Tesoro and our acquisition of Western represents another significant milestone in our journey,” said Greg Goff, chairman and chief executive officer of Tesoro.
“Acquiring the business at an attractive price relative to its intrinsic value and the delivery of synergies positions us well to create significant shareholder value.”
Mr. Goff will continue to serve as chairman, president and chief executive officer and Steven Sterin will continue to serve as executive vice president, chief financial officer and president, tesoro logistics.
In addition, Western’s former executive chairman, Paul Foster, and Western’s former Chief executive officer, Jeff Stevens, will soon join Tesoro’s board as directors.
Tesoro’s headquarters will remain in San Antonio, TX.
Tesoro expects the combination to deliver $350 to $425 million in annual synergies by June 2019, the second year following the closing of the transaction.
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