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EL PASO, Texas -- Western Refining Inc. completed the previously announced acquisition of Giant Industries Inc., after a U.S. District Court earlier this week denied the Federal Trade Commission's (FTC) request for a preliminary injunction and eliminated a temporary restraining order that was issued on April 13.
"We are delighted with the closing of the Giant transaction, which marks a new chapter in the history of our company," Western president and CEO Paul Foster said in a written statement. "With Giant, we have significantly increased our refining capacity in fast- growing, high-demand areas and have gained an immediate footprint in new, complementary businesses. We are now focused on seamlessly integrating these two great companies and realizing the tremendous upside potential our combination creates."
As a result of the acquisition, Western is the fourth largest publicly traded independent refiner and marketer in the U.S., with a total crude oil throughput capacity of approximately 223,000 barrels per day.
"We are pleased that the merger with Western has closed. As I've said in the past, we firmly believe that this transaction is in the best interest of our shareholders, employees and customers," Fred Holliger, Giant's chairman and CEO, said in a statement. "I am confident that the combination of these two companies will provide greater employee career opportunities and a stronger, more competitive supplier to all the markets the combined company will serve."
As part of the agreement, Giant's shareholders will receive $77 per share in cash.
The completion of the merger comes shortly after the U.S. Court of Appeals for the 10th Circuit denied the FTC's request for an injunction based on its appeal to the U.S. District Court's ruling, which denied the FTC's request for an injunction this week.
The FTC had maintained that the $1.3 billion acquisition of Giant Industries by Western Refining -- announced in November and approved by shareholders in February -- would ultimately lead to higher gas prices in the regions they operate.