By OGJ editors
HOUSTON, Aug. 30 -- Western Refining Inc. plans to acquire Giant Industries Inc., Scottsdale, Ariz., for $1.5 billion, including $275 million in debt.
The boards of both companies announced on Aug. 28 that they unanimously approved a definitive merger agreement under which Western of El Paso plans to acquire all of Giant's outstanding stock for $83/share.
Subject to customary conditions and regulatory approvals, the transaction is expected to close during the fourth quarter. The new combined independent refiner and marketer will have the capacity to handle 193,500 b/d from four refineries (OGJ, Dec. 19, 2005, p. 63).
In addition to its 90,000 b/cd refinery in El Paso, the Giant acquisition will give Western an East Coast presence with Giant's 58,900 b/d refinery in Yorktown, Va.
Western also is acquiring Giant's two northern New Mexico refineries: a 18,600 b/cd refinery in Bloomfield and a 26,000 b/cd refinery in Gallup.
In addition to the four refineries, Western's assets will include products terminals in Flagstaff, Ariz., and Albuquerque, NM, and asphalt terminals in Arizona, New Mexico, and Texas.
Western's asset base also will include 159 retail outlets and convenience stores in Arizona, Colorado, and New Mexico, and two wholesale products distributors.