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Tesoro Eyes Permian Basin in Deal to Buy Western Refining

  • Deal extends company into attractive growth markets: CEO Goff
  • Western Refining shares soared as much as 27 percent
Updated on

Tesoro Corp. agreed to buy Western Refining Inc. for about $4.1 billion in a deal that positions the oil refiner to take advantage of crude production growth in the prolific Permian Basin.

After the purchase, Tesoro will become the fourth-largest independent U.S. refiner with a capacity of more than 1.1 million barrels a day, accounting for about 6 percent of U.S. crude-processing capacity, the companies said in a joint statement Thursday. Western’s assets will expand Tesoro’s network of midstream and retail assets across the Southwest and Mid-Continent regions.