EL PASO, Texas & SCOTTSDALE, Ariz. -- Western Refining Inc. and Giant Industries Inc. have announced that the U.S. District Court for the District of New Mexico has denied the Federal Trade Commission's request for a preliminary injunction related to the companies' proposed merger and dissolved the temporary restraining order issued on April 13, 2007.
"The district court's ruling affirms what we, as well as what many customers and state and industry leaders, have said all along. We believe a Western-Giant combination is pro-competitive and provides [image-nocss] important benefits to the companies' stakeholders, including our customers, shareholders and employees," said Western Refining's president and CEO, Paul Foster.
Based upon discussions with the FTC prior to the court's ruling, Western Refining said it believes the FTC will appeal the ruling regardless of the rationale or basis for the court's opinion, and that the FTC will seek an injunction from either the district court or the U.S. Court of Appeals for the 10th Circuit to preclude the closing of the merger pending the FTC's appeal to the 10th Circuit Court. Western Refining and Giant said they believe there is no basis for either an injunction or an appeal.
To ensure an orderly process to a May 31, 2007, close, Western Refining and Giant have agreed with the FTC to not close the merger prior to noon Mountain Time on Thursday, May 31, 2007. Western and Giant noted that absent a ruling from the 10th Circuit enjoining the merger, the companies may close the transaction at any point after noon Mountain Time on May 31.
"There is no basis for the FTC to appeal the district court's decision. We remain confident in our position and look forward to closing the transaction," added Foster.
On Nov. 13, 2006, Western Refining and Giant announced an agreement under which Western Refining would acquire all of the outstanding shares of Giant for $77 per share in cash. Giant shareholders voted to approve the transaction on Feb. 27, 2007.
Western Refining, El Paso, Texas, is an independent crude oil refiner and marketer of refined products, operating primarily in the U.S. Southwest, including Arizona, New Mexico and West Texas.
Giant, Scottsdale, Ariz., is a refiner and marketer of petroleum products. It owns and operates one Virginia and two New Mexico crude oil refineries, a crude oil gathering pipeline system based in Farmington, N.M., which services the New Mexico refineries, finished products distribution terminals in Albuquerque, N.M., and Flagstaff, Ariz., a fleet of crude oil and finished product truck transports and a chain of retail service station/convenience stores in New Mexico, Colorado and Arizona. Giant is also the parent company of Phoenix Fuel Co. Inc., Dial Oil Co. and Empire Oil Co., all of which are wholesale petroleum products distributors.
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