Sunoco Agrees To Acquire NuStar In An All-Equity Transaction Valued At ~$7.3B, Including Assumed Debt
Portfolio Pulse from Benzinga Newsdesk
Sunoco has agreed to acquire NuStar in an all-equity deal valued at approximately $7.3 billion, including assumed debt. NuStar unitholders will receive 0.400 Sunoco units per NuStar unit, a 24% premium based on the 30-day VWAP as of January 19, 2024. The boards of both companies have approved the transaction, expected to close in Q2 2024.
January 22, 2024 | 12:47 pm
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Sunoco's agreement to acquire NuStar may lead to a short-term dip in SUN's stock price due to the costs associated with the acquisition and the issuance of additional units.
Acquiring companies often experience a short-term decline in stock price following the announcement of an acquisition, as investors may be concerned about the costs of the deal and the dilution of existing shares due to the issuance of new units. However, the long-term value creation potential of the acquisition may offset these concerns over time.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
NuStar unitholders are set to receive a 24% premium on their units as part of the acquisition by Sunoco, indicating a favorable short-term impact on NS's stock price.
The acquisition agreement includes a significant premium for NuStar unitholders, which typically leads to a positive reaction in the market for the acquired company's stock. The premium suggests that Sunoco values NuStar's assets and operations highly, which can be seen as a vote of confidence in NuStar's value.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100