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 purchase a 38.7 percent stake in Northern Tier owned by private equity firms TPG Capital Management and Acon Investments Ltd, the Journal reported.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.
Northern Tier Energy LP, formerly Northern Tier Energy, Inc. Shares of NTI traded higher by 2.6% or $0.59/share to $23.26. In the past year, the shares have traded as low as $17.83 and as high as $33.24. On average, 1360890 shares of NTI exchange hands on a given day and today's volume is recorded at 1179062.
Western Refining, Inc. (WNR) is an independent crude oil refiner and marketer of refined products and also operates service stations and convenience stores. Shares of WNR traded higher by 2.03% or $0.66/share to $33.10. In the past year, the shares have traded as low as $24.39 and as high as $39.42. On average, 1246110 shares of WNR exchange hands on a given day and today's volume is recorded at 767289.
Source
