Hollyfrontier Corp and its pipeline partner will buy refining and logistics assets from privately held The Sinclair Companies in a $1.8 billion deal, the U.S. refiner said on Tuesday.
The deal comes as U.S. fuel demand continues to recover from last year's coronavirus-led record lows, with vaccinations helping states reopen and road travel trending towards pre-pandemic levels.
A new company, HF Sinclair Corp, will replace HollyFrontier as the public company trading on the NYSE, it said in a statement. Under the deal, HollyFrontier will buy Sinclair's branded marketing unit, renewable diesel unit and two Rocky Mountain-based refineries.
The refiner said the deal is expected to add to HF Sinclair's earnings, cash flow and free cash flow within the first full year.
(Reporting by Rithika Krishna in Bengaluru; editing by Vinay Dwivedi) ((Rithika.Krishna@thomsonreuters.com;))