NEWTOWN SQUARE, Pa., and DALLAS -- Sunoco Logistics Partners LP and Energy Transfer Partners LP (ETP) have entered into a merger agreement providing for the acquisition of ETP by Sunoco Logistics in a unit-for-unit transaction. The transaction was approved by the boards of directors and conflicts committees of both partnerships and is expected to close in the first quarter of 2017, subject to receipt of ETP unitholder approval and other customary closing conditions.
Under the terms of the transaction, ETP unitholders will receive 1.5 common units of Sunoco Logistics for each common unit of ETP they own.
With this transaction, Sunoco Logistics and ETP expect to build upon their experience working together as partners in several joint ventures to pursue commercial opportunities and to achieve cost savings while enhancing the service capabilities for their customers, the companies said. Sunoco Logistics and ETP expect that the transaction will allow for commercial synergies and costs savings in excess of $200 million annually by 2019.
Energy Transfer Partners LP, Dallas, is a master limited partnership that owns and operates one of the largest and most diversified portfolios of energy assets in the United States. ETP currently owns and operates more than 62,500 miles of natural gas and natural gas liquids pipelines. It also is the parent company of retailer Sunoco LP, a master limited partnership (MLP) that operates approximately 1,300 retail fuel sites and convenience stores (including APlus, Stripes, Aloha Island Mart and Tigermarket brands) and distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors located in 30 states at approximately 6,800 sites.
Newtown Square, Pa.-based Sunoco Logistics Partners LP is a master limited partnership that owns and operates a logistics business consisting of a geographically diverse portfolio of complementary pipeline, terminals and acquisition and marketing assets that are used to facilitate the purchase and sale of crude oil, refined products and natural gas liquids and refined products.