(Reuters) – Phillips 66 said on Wednesday it will buy remaining units of Phillips 66 Partners it does not already own for $3.4 billion, as the refiner aims to simplify its governance and corporate structure.
Phillips 66 Partners was formed by the refiner to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum products and natural gas liquids pipelines, terminals and other midstream assets.
“We believe this acquisition will allow both PSX shareholders and PSXP unitholders to participate in the value creation of the combined entities, supported by the strong financial position of Phillips 66,” Chief Executive Officer Greg Garland said in a statement.
The all-stock deal, expected to close in the first quarter of 2022, will offer each outstanding Partnership common unitholder 0.50 shares of PSX common stock for each PSXP common unit.
(Reporting by Arunima Kumar in Bengaluru; Editing by Shinjini Ganguli)
