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Sunoco Plans to Sell Refineries in Pennsylvania due to Dependence on Costly Feed Inputs and Falling Market Demand

By:
, Published: Apr-2012
Report Code: GDGE0369M&A    Report Format: Electronic PDF

Description


Sunoco, Inc., a manufacturer and marketer of petroleum and petrochemical products, intends to sell its Philadelphia and Marcus Hook, Pennsylvania refineries. The refineries have a combined crude oil processing capacity of 25.54 million tons per annum.
The transaction will mark a fundamental shift away from manufacturing and re-position the company in the industry.
Lynn L. Elsenhans, chairman and chief executive officer of Sunoco, said, "We have made progress in increasing the efficiency of our refineries over the last several years, but given the unacceptable financial performance of these assets, it is clear that it is in the best interests of shareholders to exit this business and focus on our profitable retail and logistics businesses which have higher returns, growth potential, and provide steady cash flow."


Scope

  • Rationale behind Sunoco planning to sell and close down its refineries in the US East Coast
  • Stratigic benefit for the company involved in the decesion
  • Geography covered - US

Reasons to Buy

  • Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures undertaken by Sunoco and reason for closing down and selling its refineries.
  • Plan project locations and project types to capitalize on the challenging refining market
  • Identify the most suitable region to invest in refining assets