Natural gas pipeline operator Energy Transfer Partners LP (ETP) on Monday announced a deal to acquire oil refiner Sunoco Inc. (SUN) for $5.4 billion in cash and stock.

In pursuant to the deal, Sunoco shareholders will receive $25 in cash and 0.5245 ETP shares for each SUN share they currently own. In total, the $50.13 per-share offer represents a 22.5% premium to Sunoco’s Friday closing price of $40.91.

ETP said the deal allows it some exposure to the more-lucrative oil transportation business, as its natural gas transportation business lags amid low natural gas prices.

Energy Transfer Partners shares rose $1.31, or +2.7%, in premarket trading Monday, while Sunoco shares jumped $8.23, or +20%.

The Bottom Line
Shares of Energy Transfer Partners (ETP) have a 7.47% dividend yield, based on Friday’s closing stock price of $47.92. Shares of Sunoco (SUN) have a 1.96% dividend yield, based on Friday’s closing stock price of $40.91.

Both Energy Transfer Partners LP (ETP) and Sunoco Inc. (SUN) are rated “Neutral” by Dividend.com.

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