Refining company Andeavor and pipeline company Andeavor Logistics LP announced Monday an agreement in which Andeavor Logistics will buy master limited partnership Western Refining Logistics LP in a deal with an enterprise value of $1.8 billion, including the assumption of debt. Under terms of the deal, Western Refining unitholders will receive 0.5233 Andreavor Logistics shares for each Western Refining shares they own. Based on Friday's closing prices, the deal values Western Refining shares at $25.28, which is a 6.4% premium. Once the deal closes, Andeavor Logistics will issue 78.0 million common units to Andeavor to cancel Andeavor Logisitics' incentive distribution rights. Andeavor's stock has gained 8.0% year to date through Friday, while Andeavor Logistics shares have lost 4.9%, Western Refining shares have climbed 11% and the S&P 500 has gained 9.0%.
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