viewFrontier Oil

Holly Corp and Frontier Oil to execute “merger of equals”


Holly Corp (NYSE:HOC) and Frontier Oil (NYSE:FTO) announced Tuesday that they will combine in an all-stock “merger of equals” to create a large oil refining company with an enterprise value of $7 billion.

The new company, which will be named HollyFrontier Corporation and based in Dallas, Texas, will serve the Mid-Continent, Rocky Mountain and Southwest refining markets, and will have access to regional domestic and Canadian crude oil supplies.

"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.,” said Holly’s chairman and CEO Matt Clifton, and Frontier’s chairman, president and CEO Mike Jennings, in a joint statement.

“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."

Indeed, the expanded footprint of the combined company will allow for an increase in refining capacity, while maintaining significant exposure to the supply of lower cost domestic and Canadian crude oil. The new entity is expected to have a refining capacity in excess of 440,000 barrels-per-day across five refineries.

Under the terms of the merger agreement, Frontier shareholders will receive 0.4811 Holly shares for each share of Frontier common stock. After the deal closes, Holly shareholders will own around 51% of the combined entity, with Frontier holding the remaining shares.

The two companies said that the merger will generate at least $30 million through total annual cost savings. HollyFrontier Corp will be run by Jennings, while Clifton will serve as executive chairman.

The transaction is expected to be completed early in the third quarter, subject to shareholder approvals. 

Quick facts: Frontier Oil

Price: - -

Market: NYSE
Market Cap: -

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...


Yew Grove REIT target multinational companies and government bodies for...

Yew Grove REIT's chief executive, Jonathan Laredo presents his company to Proactive London. He explains how the firm targets office and industrial buildings outside the centre of Dublin, in the suburbs and regional Ireland. They target mostly occupied buildings, attractive to multinational...

1 hour, 18 minutes ago

2 min read