WASHINGTON -- Western Refining Co.'s planned purchase of a Giant Industries moved forward this week, reported The East Valley Tribune.
El Paso, Texas-based Western's planned takeover of Giant scored several wins against federal regulators trying to scuttle the deal, the report said. The Federal Trade Commission (FTC) has dropped all but one claim in advance of a scheduled hearing by the U.S. District Court for the District of New Mexico next Monday.
Three weeks ago, the antitrust watchdogs sought a restraining order to halt the [image-nocss] merger of the refinery rivals, claiming it would restrict competition in northern New Mexico. Western and Giant sought a hearing and asked the court to dismiss all FTC claims.
On Tuesday, the report said, the FTC dropped charges of anti-competitiveness in the light petroleum products market along with its separate claims involving diesel and jet fuel businessesneither company even makes jet fuelbut the government still contends the merger would stifle competition for gasoline.
Western hopes to buy Scottsdale, Ariz.-based Giantwhich operates three refineries, two wholesale gas distributors (Phoenix Fuel and Dial Oil Co.), a crude oil pipeline, a fleet of truck transports and 153 retail convenience stores/gas stationsfor $77 a share plus debt assumption, a deal worth $1.4 billion.
The merger between the two oil companies was expected to close in the first quarter, but the FTC had asked for more documents, which Giant and Western said they provided as requested. Besides producing everything requested by the FTC, the two oil companies said they have provided letters of support for the merger from state government officials, industry trade organizations and customers, according to the report.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.