Sunoco LP to acquire NuStar Energy in $7.3-billion deal

Sunoco LP has agreed to acquire NuStar Energy LP in an all-equity transaction valued at about $7.3 billion, including debt. Sunoco, in a Jan. 22 press release, said the deal—which it expects will generate at least $150 million of run-rate synergies by the third year following closing—increases stability by diversifying the business, adding scale, and capturing benefits of vertical integration.

NuStar’s assets include 5,400 miles of refined product pipelines, 2,100 miles of crude pipelines, 14 crude terminals, 49 refined product terminals, and 2,000 miles of ammonia pipelines.

The deal is expected to close in second-quarter 2024 upon the satisfaction of closing conditions, including approval by NuStar’s unitholders and customary regulatory approvals.

Sunoco LP is a master limited partnership with operations that include the distribution of motor fuel to about 10,000 convenience stores, independent dealers, commercial customers, and distributors in more than 40 US states and territories as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer LP.