NuStar to gain access to better capital in deal with Sunoco - Brokerage

NuStar Energy LP

23/01/2024 12:56

** Raymond James expects fuels storage and pipeline operator
NuStar Energy  NS.N  to benefit from its $7.3 billion deal with
Sunoco  SUN.N  
    ** SUN said on Monday it would acquire NuStar Energy in a
deal, which includes debt     
    ** Brokerage expects better capital availability would allow
SUN to deploy high-return growth projects that NS was previously
unable to execute
    ** SUN is seeking to diversify its core business beyond
distribution of motor fuels
    ** "We're positive on the integration potential and what it
means for the long-run financial model at SUN" - Raymond 
    ** J.P.Morgan expects NuStar shareholders to accept the deal
and doesn't expect any other player to come in over the top to
acquire NS
    ** Meanwhile, Mizuho views the deal as "less than stellar",
and says the 10% accretion three years out for SUN strikes the
brokerage as "wanting"
    ** SUN down 5.3% so far in January, after returning over 24%
in 2023, while NS up 14.13% YTD  
    
        

 (Reporting by Roshan Abraham)
 ((Roshan.Abraham@thomsonreuters.com))