Sunoco Acquires NuStar Energy in $7.3 Billion Deal

The all-stock deal, set to close in Q2, aims to expand Sunoco's crude oil transportation and storage capabilities.

Sunoco LP, a US gas station owner, has agreed to acquire pipeline and fuel storage company NuStar Energy LP for about $7.3 billion in an all-stock deal.
The acquisition is expected to close in the second quarter, expanding crude oil transportation and storage for Sunoco.
NuStar Energy's assets, which include pipelines and terminals for oil, chemicals, ammonia and other fuel-related products, are mainly in the Midwest and West Coast, with some operations in Mexico.
The deal is expected to create $50 million a year of additional cash flow while also generating 'at least' $150 million of run-rate synergies in three years time.
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.