Phillips closes on acquisition of Tosco
Monday, September 17th 2001, 12:00 am
By: News On 6
BARTLESVILLE, Okla. (AP) _ Phillips Petroleum Co. closed on its $7 billion acquisition of Tosco Corp. after getting regulatory clearance from the U.S. Federal Trade Commission, Phillips announced Monday.
The purchase creates the second-largest refiner in the country. It also creates the fifth-largest gas retailer in number of service stations and the third-largest based on gallons of fuel sold.
There were no requirements for divestiture of assets.
Each share of Tosco common stock was converted into the right to receive 0.8 of a share of Phillips common stock. Phillips said information about the exchange of share certificates will be sent to former Tosco shareholders soon.
Phillips shares were trading at $58.65, up 9 cents, at midmorning Monday.
``We have combined two strong complementary companies into a significant refining and marketing competitor in the United States,'' said Jim Mulva, Phillips' chairman and chief executive. ``Acquiring Tosco is the fourth integral piece of a strategic growth plan we set for ourselves two years ago.''
Effective with the close, Michael J. Panatier became chief operating officer of Phillips' refining, marketing and transportation business, Phillips 66 Co. Panatier also will remain executive vice president of Phillips Petroleum Co.
Tom O'Malley, chairman and chief executive of Tosco, became vice chairman and a member of Phillips' board of directors. O'Malley, 60, will remain an employee and vice chairman through Dec. 31. Afterward, he will remain on the Phillips board.
Phillips 66 now owns 10 U.S. refinery systems with a combined capacity of 1.7 million barrels per day, along with a 75,000 barrels-per-day refinery in Ireland.
The company will market its products nationwide through 12,400 branded outlets, including the Phillips 66, '76 and Circle K.
The refining headquarters is in Linden, N.J., with marketing headquarters based in Tempe, Ariz. Certain functions, including research and development, are housed at Phillips' corporate headquarters in Bartlesville.