Sunoco LP and NuStar Energy LP to Merge in $7.3 Billion Deal

Sunoco LP and NuStar Energy LP have recently announced their agreement to combine in an all-stock deal worth approximately $7.3 billion, including debt. This strategic merger marks a significant milestone in the energy industry.

Merger Details

Under the terms of the deal, NuStar common unitholders will receive 0.400 Sunoco shares for each unit owned. This exchange ratio represents a remarkable 24% premium based on the 30-day volume-weighted average prices of both NuStar and Sunoco as of January 19.

Additionally, Sunoco has secured a $1.6 billion 364-day bridge term loan to refinance NuStar’s Series A, B, and C preferred units, subordinated notes, revolving credit facility, and receivables financing agreement.

Sunoco LP: Leading in Motor Fuel Distribution

Sunoco LP is a well-established master limited partnership (MLP) with operations spanning across 40 U.S. states. One of its core business activities involves distributing motor fuel to approximately 10,000 convenience stores and various other retail locations.

NuStar Energy LP: A Distinguished Liquids Terminal and Pipeline Operator

On the other hand, NuStar Energy LP stands out as an independent operator primarily focused on liquids terminal and pipeline operations. Their expertise in this field positions them as a key player in the industry.

Market Response and Future Prospects

Following this announcement, NuStar’s stock jumped an impressive 22% during premarket trading – a testament to the positive market sentiment surrounding this development. This merger holds great potential for both companies and is expected to result in enhanced operational efficiency and synergies.

In conclusion, Sunoco LP and NuStar Energy LP joining forces promises to shape the energy landscape for years to come. With their complementary strengths and shared vision, this merger sets the stage for an exciting future in the industry.