Carlyle Stalking Sunoco Shows Private Equity Rebound Bet: Energy

Carlyle Group’s talks to buy a majority stake in Sunoco Inc.’s Philadelphia refinery show private equity is betting the business abandoned by public oil companies may be poised for a long-term rebound.

If the talks are successful, Washington-based Carlyle would pay cash into a joint venture that would oversee day-to-day operations at the plant, according to a statement yesterday. Sunoco, based in Philadelphia, would have no ongoing capital requirements at the refinery. No terms were disclosed and an agreement hasn’t been finalized.