Nov 11 Western Refining Inc is close to
buying a controlling stake in Northern Tier Energy LP
for about $775 million to capitalize on rising U.S. oil
production, the Wall Street Journal reported, citing people
familiar with the matter.
Western Refining would buy a 38.7 percent stake in Northern
Tier owned by private equity firms TPG Capital
Management and Acon Investments Ltd, the Journal
Under the deal, Western Refining would get 100 percent of
the general partner that controls Northern Tier. The deal could
be announced on Tuesday, the paper said. ()
Northern Tier Energy's refining business primarily consists
of an 89,500-barrels-per-day refinery located in St. Paul Park,
Minnesota, near the Bakken Shale deposit.
Higher oil production from U.S. shale formations such as
Bakken has pushed refining margins higher for many companies
that own plants in the United States.
The Journal said it was not immediately clear how much
Western Refining is paying per ownership unit, or share, for
Northern Tier is structured as a master-limited partnership,
a dividend-paying investment vehicle that enjoys special tax
breaks and is often used by natural resources companies.
Both companies could not immediately be reached for comment
by Reuters outside of regular U.S. business hours.