Energy Transfer Partners agreed to acquire independent refiner Sunoco Inc. in a deal valued at about $5.3 billion.
The transaction comes after Sunoco moved to sell its refineries and focus on the business of transporting fuel. It already has shut down a refinery in Marcus Hook, Pa., and it is planning to sell its controlling interest in its Philadelphia refinery to The Carlyle Group.
Sunoco, an owner of oil refineries since 1895, said last year it would sell and shut its last two plants because they were losing money. Sunoco’s logistics and retail business will continue to be based in Philadelphia and the exit from refinery will be completed, the statement said.
The transaction allows Energy Transfer to meet its goal of diversifying both the geography of the company’s pipeline network and the products it ships, said Darren Horowitz, an analyst with Raymond James & Associates Inc. in Houston.
Through the acquisition, Energy Transfer will also own Sunoco’s general partner interest and the incentive distribution rights in Sunoco Logistics Partners L.P., as well as Sunoco’s 32.4 percent interest in the Partnership’s limited partner units and Sunoco’s branded retail business.
Shares of Sunoco Inc. jumped 22 percent, or $9.05, to $49.96 in premarket trading, which could mean that the stock will be hitting four-year highs when the market opens Monday. Shares of Energy Transfer Partners LP rose 12 cents to $48.04 .