HollyFrontier, the company that owns Cheyenne’s Frontier Oil Refinery, will buy portions of the Sinclair Companies, including its two refineries in Wyoming, the companies announced Tuesday.
Holly is to acquire the Sinclair Oil Corp. and Sinclair Transportation Co. in a deal aimed in part at expanding its renewable diesel production.
The $1.8 billion deal is expected to close in mid-2022, according to a news release from HollyFrontier.
HollyFrontier announced in June of 2020 that it would convert its refinery in Cheyenne to produce renewable diesel, a fuel made out of soybean oil. Sinclair’s refinery in Sinclair, Wyoming, near Rawlins, is already producing 10,000 barrels of the renewable diesel fuel per day and is in the process of an expansion.
Once the transaction is complete, the Sinclair and Cheyenne refineries will be able to produce about 380 million gallons of renewable diesel per year, the release said.
The addition of the refineries in Sinclair and Casper will give HollyFrontier seven refineries in the Rocky Mountain, mid-continent, Southwest and Pacific Northwest regions, the release said.
In addition to the refineries, the arrangement will give HollyFrontier the Sinclair Oil commercial activities, including its gas stations.
“The transaction will help accelerate the ongoing rapid expansion of our Sinclair branded retail sites and the iconic DINO brand,” said Ross Matthews, chairman and chief executive officer for Sinclair.
HollyFrontier will form a new parent company, HF Sinclair, which will replaced HollyFrontier as the company trading on the New York Stock Exchange, the release said.