HollyFrontier to buy refining, logistics assets from Sinclair in about $1.8bln deal

Deal is expected to add to HF Sinclair's earnings, cash flow and free cash flow within the first full year

  
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 13, 2021. Image used for illustrative purpose

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 13, 2021. Image used for illustrative purpose

REUTERS/Brendan McDermid

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;))


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