End of an Era: $TSO Swallows $WNR Whole for $37

In a perfect world, this deal should be permitted to occur. But now that the EPA is literally a holding pen for future unemployed cucks, TSO thinks they have a license to steal from the American people. As such, they’re acquiring one of their few competitors, WNR, for $37.30 per share.

In my opinion, this borders on monopoly and the government should tell them to eat a bag of dicks, instead of swallowing WNR. But the Trump administration isn’t likely to be monopoly unfriendly and will let this deal get down. Bear in mind, Trump is all about getting deals done. The more deals the better.

I could really veer off the reservation very easily now, going heavy into this bitch of a deal; but that’d be selfish of me. Trump is a true American and anything I assume about his administration now is pure conjecture, making me no worse than all of you fruit basketed retards.

Many of you know my fondness to WNR, with it being my largest holding several times during my wasteful career as a manager of money. An end of an era is upon you; the WNR has been acquired.

Tesoro Corporation (TSO) and Western Refining jointly announced a definitive agreement under which Tesoro will acquire Western at an implied current price of $37.30 per Western share in a stock transaction, representing an equity value of $4.1 billion based on Tesoro’s closing stock price of $85.74 on November 16, 2016. This represents an enterprise value of $6.4 billion, including the assumption of approximately $1.7 billion of Western’s net debt and the $605 million market value of non-controlling interest in Western Refining Logistics, LP (WNRL).

The acquisition is expected to create a premier, highly integrated and geographically diversified refining, marketing and logistics company and provides a strong platform for earnings growth and cash flow generation.

Under the terms of the agreement, Western shareholders can elect to receive 0.4350 shares of Tesoro for each share of Western stock they own, or $37.30 in cash per share of Western stock. Elections to receive cash will be subject to proration to the extent they exceed approximately 10.8 million shares (or approximately $404 million in the aggregate). Stock elections will not be subject to proration. The purchase price represents a premium of 22.3% to the closing price of Western’s stock on the day prior to announcement, and a 31.6% premium to the volume weighted average price over the last 30 trading days. The transaction is expected to be tax-free to Western’s shareholders who elect stock.

Expected benefits of the transaction:
Shareholders of both companies will benefit from $350 to $425 million in operational, commercial and corporate synergies.
Expects to achieve 10% to 13% EPS accretion in 2018, the first full year of combined operations

Upon closing, Tesoro will continue to have a strong balance sheet and credit metrics, and will remain on track for achieving an investment grade credit rating. The Company has increased its share repurchase authorization by $1.0 billion to over $2.0 billion in total. Tesoro expects to maintain its current quarterly dividend of $0.55 per share (or $2.20 per share annualized) after closing and is focused on growing dividends commensurate with the growth of the Company.