Phillips Petroleum Acquires Tosco
BARTLESVILLE, Okla. (AP) _ Phillips Petroleum Co. closed its $7 billion acquisition of Tosco Corp. on Monday, after getting regulatory clearance from the U.S. Federal Trade Commission.
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, the company said in a news release.
Each share of Tosco common stock was converted into the right to receive 0.8 of a share of Phillips common stock. Phillips shares were trading at $58.60, up 4 cents in afternoon trading Monday on the New York Stock Exchange.
``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.
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.