Monday, April 30, 2012

Energy Transfer, Sunoco Announce Merger

Energy Transfer Partners, L.P. (NYSE: ETP - News) and Sunoco, Inc. (NYSE: SUN - News) today announced that they have entered into a definitive merger agreement whereby ETP will acquire Sunoco for approximately $5.3 billion. "This combination will create one of the largest and most diversified energy partnerships in the country by expanding ETP’s geographic footprint and strengthening its presence in the transportation, terminalling and logistics of crude oil, NGLs and refined products," according to a press release from the company. The acquisition "expands ETP’s geographic footprint and markedly strengthens its presence in crude oil, NGLs and refined products transportation, terminalling, and logistics." According to an article by the Associated, Press, the deal will give Energy Transfer the capability to transport crude and other liquid hydrocarbons that are being produced in greater quantities thanks to the boom in shale drilling. Sunoco’s pipelines crisscross the country, connecting the Great Lakes and Northeast to America’s refining center along the Gulf Coast. Click to read the press release.