Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Sunoco to buy NuStar Energy in $7.3bn deal

(Sharecast News) - US gas station owner Sunoco said on Monday that it has agreed to buy independent liquids terminal and pipeline operator NuStar Energy in a $7.3bn all-share deal. Under the terms of the agreement, NuStar shareholders will receive 0.400 Sunoco common units for each of their NuStar shares.

Sunoco said the deal diversifies the business, adds scale, and captures the benefits of vertical integration "by combining two stable businesses".

It expects at least $150m of run-rate synergies by the third year after the close and around $50m a year of additional cash flow from refinancing the high-cost floating rate capital.

NuStar shares surged on the news and by 1340 GMT, were trading up 22% in pre-market trade at $21.97.

Share this article

Related Sharecast Articles

Novacyt gearing up for hearing in DHSC litigation
(Sharecast News) - Molecular diagnostics specialist Novacyt updated the market on legal proceedings between itself and its subsidiary Primer Design against the Department of Health and Social Care (DHSC) on Friday.
Venture Life renews revolving credit facility
(Sharecast News) - Self-care products specialist Venture Life Group announced the renewal of its revolving credit facility with Santander UK and HSBC Innovation Bank on Friday.
Schneider Electric in talks to take over Bentley Systems - report
(Sharecast News) - French industrial energy giant Schneider Electric on Friday announced that it was in discussions to take over US-listed software firm Bentley Systems in a deal that could be worth nearly $16bn.
Thames Water submits plan to raise bills by 56pc
(Sharecast News) - Thames Water has submitted a revised business plan to regulators, proposing an increase in bills of 56%, it was reported on Friday.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.