Delek To Buy Outstanding Alon Shares In All-stock Deal With Equity Valure Of $464 Million

By Ciara LinnaneMarketsMarketWatch Pulse

Delek US Holdings Inc. said Tuesday it has agreed to acquire the shares of Alon USA Energy Inc. it does not already own in an all-stock transaction with an equity value of $464 million, and an enterprise value of $675 million, including debt and other items. The combined entity will be a Permian Basin play with an enterprise value of about $2.8 billion. Delek expects the deal to boost earnings in 2018, its first full year of operation. The Delek board has further approved a $150 million share buyback program. Delek owned about 33.7 million shares of Alon stock. The deal is expected to close in the first half. Alon shares surged 10.5% in premarket trade, while Delek was still inactive.

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