Merger Monday lived up to its moniker today as Energy Transfer Partners LP (NYSE: ETP) announced plans to acquire Sunoco Inc. (NYSE: SUN) for $5.3 billion.
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Investors cheered the deal, sending shares of both companies higher. Following the announcement, Sunoco stock gushed higher by more than 20%, its biggest gain in more than three years. Energy Transfer Partners rose almost 6%.
The acquisition is just the latest in big-time energy deals fueled by the need for expanding pipeline networks.
The deal gives Energy Partners 7,900 miles of oil pipelines, as well as 4,900 Sunoco branded retail fueling stations in the United States.
Darren Horowitz, an analyst with Raymond James & Associates says the transaction will help Energy Transfer attain its objective of expanding both the geography of the company's pipeline network and the products it ships, adding, "It opens the door for greater growth."