Western Refining Inc. was close to acquiring a commanding stake in Northern Tier Energy LP worth USD775 million. Sources quoted by the Wall Street Journal said that the deal aimed to capitalize on the growing US oil production.
The Texas-based independent crude oil refiner and marketer would buy a 38.7% stake in Northern Tier, the Journal report said. Energy company Northern Tier is backed by private equity firms TPG Capital Management and Acon Investments Ltd.
According to a profile compiled by Bloomberg, energy company Northern Tier owns and operates a 445,000-barrel-per-day crude oil pipeline located in Minnesota. As of last year, the oil refining and retail company operates 166 convenience stores and supported 70 franchised convenience stores in the US.
Under said deal, Western Refining would get 100% of the general partner controlling Northern Tier. However, Western Refining's offer per ownership unit or share remains to be undisclosed, the Journal said.
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