Tesoro to Buy BP Refining and Marketing Business

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By Trey Thoelcke Published
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Tesoro Corp. (NYSE: TSO) announced that it that is has agreed to purchase BP PLC’s (NYSE: BP) integrated Southern California refining and marketing business for $1.18 billion, plus the value of inventory at the time of closing.

At current prices, the inventory is valued at about $1.3 billion. The deal is expected to close before mid-2013.

“This transaction is a unique opportunity for Tesoro to combine the best aspects of two West Coast refining and marketing businesses resulting in a more efficient integrated refining, marketing and logistics system,” said Greg Goff, president and CEO of Tesoro. “Given Tesoro’s existing operations on the West Coast and our understanding of the complexities and challenges of operating in California, we are well positioned to generate significant operational efficiencies, increase our ability to satisfy market demand and reduce stationary source air emissions.”

The Carson refinery is located south of Los Angeles and is adjacent to Tesoro’s Wilmington refinery. The combined and reconfigured operations are expected to drive annual synergies of about $250 million, with an additional capital investment of around $225 million.

The transaction also includes approximately 800 dealer-operated retail stations in Southern California, Nevada and Arizona. Tesoro will acquire the well-established ARCO brand and a master franchisee license for the ampm convenience store brand.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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