TULSA, Oklahoma -- Holly Corporation, the company which owns both of Tulsa's oil refineries, has agreed to acquire Frontier Oil Corporation.
The price tag is $2.9 billion.
The combined company will be called HollyFrontier Corporation and will be based in Dallas.
The deal will add Frontier refineries in El Dorado, Kansas and Cheyenne, Wyoming to the list of refineries already owned by Holly. They include refineries in Tulsa, Artesia, New Mexico and Woods Cross, Utah.
The new company will have a refining capacity in excess of 440,000 barrels-per-day across five refineries.
In a joint statement, Matt Clifton, Holly's Chairman and Chief Executive Officer, and Mike Jennings, Frontier's Chairman, President and Chief Executive Officer said, "Frontier and Holly are two of the most profitable, publicly traded independent refining companies; together we will be one of the largest independent refiners in the U.S. We expect this transaction to deliver meaningful value to our shareholders, as it provides significant growth potential via a combined company that is better positioned in an increasingly competitive industry. This strategic combination of Holly and Frontier increases our diversity of assets and geographic coverage, provides for a strong balance sheet and brings together two of the strongest management teams and the most talented employees in the industry. We are excited to move forward with this transaction and to realize the potential inherent in this combination to deliver significantly higher value for the shareholders of both companies."
Holly says the deal is expected to close in the third quarter. The agreement is subject to shareholder approval and antitrust review.