Phillips Petroleum to buy Tosco, owner of ’76’ and Kendall brands
NEW YORK (Feb. 5, 2001) — Phillips Petroleum Co. has agreed to acquire Tosco Corp. for at least $7 billion US in stock.
The deal would make Phillips the second-largest refiner in the United States and the fifth-largest fuel retailer. Phillips is believed to be offering between 0.78 to 0.80 of a share of Phillips for each share of Tosco. That would value each Tosco share at roughly $45 a share, more than a 30% premium on Tosco’s closing price Friday of $34.61.
The move continues the trend of consolidation among oil refiners. Within the past two years, British Petroleum PLC has acquired Amoco Corp., Exxon Corp. has purchased Mobil Corp., and Chevron Corp. has bought Texaco Inc.
Tosco, which markets fuel and lubricants under the “76” brand, is based in Old Greenwich, Conn.
Last month, the company agreed to buy Sunoco Inc.’s Kendall motor oil brand.
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