U.S. pipeline operator Andeavor Logistics LP (NYSE: ANDX) said Aug. 14 it would buy rival Western Refining Logistics LP (NYSE: WNRL) for $1.5 billion as it seeks to expand into the Permian Basin in Texas and New Mexico.
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% to Western Refining Logistics' closing price on Aug. 11.
Andeavor, formerly known as Tesoro Corp., bought Western Refining Inc. 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 (NYSE: ANDV) in exchange for the cancellation of its incentive distribution rights.
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