Tesoro Corp. has received U.S. Federal Trade Commission clearance for the sale of its 94,000 barrel-per-day Kapolei refinery, plus dozens of retail gas stations in Hawaii, to a subsidiary of Texas-based Par Petroleum Corp., Pacific Business News reported.
The price of the acquisition was reported at close to $400 million.
Tesoro reported in June that it had signed an agreement with Hawaii Pacific Energy LLC to sell all of its interest in Tesoro Hawaii LLC, which operates the refinery, retail stations and associated logistical assets.
As part of the agreement, Hawaii Pacific Energy intends to operate the assets as an integrated refining, logistics and retail system, according to Tesoro.
The Hawaii operations is selling for $75 million, plus the market value of net working capital, which is expected to be about $225 million to $275 million, Tesoro said. Also included in the sale is an earn-out arrangement payable over three years up to $40 million based on consolidated gross margins, Pacific Business News reported.
Tesoro anticipates completing the sale in the third quarter of this year, subject to customary closing conditions.