Tesoro to make $677 million acquisition from BP
18 Jul 2001
Tesoro Petroleum Corporation and BP have announced that they have reached an agreement for Tesoro to acquire BP's Mandan, North Dakota and Salt Lake City refineries and associated storage, pipeline, distribution and gasoline marketing operations for $677 million, excluding working capital.
According to a statement BP will transfer ownership of the two refineries, associated North Dakota crude and product pipelines, bulk storage, eight product distribution terminals, and 45 retail gasoline stations to Tesoro on completion of the deal.
BP will also assign to Tesoro contracts for about 300 Amoco-branded stations that are owned by about 80 Amoco-branded gasoline jobbers.
As a result of the deal Tesoro will own and operate five refineries with a combined throughput capacity of 390,000 barrels per day.
In addition, Tesoro's branded retail network locations will expand to approximately 640 retail locations while adding approximately 700 employees to Tesoro.
Tesoro and BP are keen to quickly seek required regulatory approvals and aim to close the acquisition in the early part of the fourth quarter.
The two refineries plan to continue to operate normally during the sales process and will meet all existing product supply commitments.
