Earlier today Energy Transfer Partners (ETP), one of the world's largest energy distributor's agreed on buyout terms with the oil giant Sunoco. The 5.3 billion dollar buyout will Award Energy Transfer Partners control of all storage, transportation, and distribution assets owned by Sunoco. The Philadelphia based Sunoco will add another major dimension to ETP's already vastly expanding oil distribution in the US which includes control of storage and distribution facilities in several southern states and pipeline infrastructure spanning from Arizona to West Virginia. Energy Transfer's buyout of Sunoco comes on the heels of its 2011 purchase of the Southern Union pipeline which connects several major shale gas points across the US.
Sunoco shareholders can expect several offers from Energy Transfer; however the primary deal seems to be based around an offering of $25 dollars in cash and 0.52 shares of Energy Transfer per every 1 share of Sunoco. The total value is about $50.13 a share, almost 30% higher than Sunoco's most recent closing price. You can expect this deal to be done before the end of the 2012 fiscal year. The share offer is still awaiting federal board and shareholder approval.
The deal has been brokered primarily by Wells Fargo (WFC) on the Energy Transfer side and Credit Suisse (CS) on the Sunoco side. Keep an eye on all four players over the next several months as this deal gets finalized. Sunoco shares are up already this afternoon about 7.90, roughly 19.26%. Once the deal becomes final, Sunoco shareholders should enjoy humble earnings from this deal.
For more on this deal please see below:
For more on this deal please see below:
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