Western Refining, Giant to fight FTC's opposition of companies' merger

By Lisa Kerner

Charlotte, N.C., April 10 - Western Refining, Inc. and Giant Industries, Inc. will challenge the recent decision by the U.S. Federal Trade Commission to seek to enjoin the companies' proposed merger, saying the decision is "without basis in fact or law," according to a news release.

"This merger will result in more product being provided to the combined companies' customers and is, therefore, pro-competitive," Western Refining president and chief executive officer Paul Foster said in the release.

"The FTC's decision demonstrates a fundamental and troubling lack of understanding about the areas in which Western Refining and Giant operate, the competitors in those areas and the competitive nature of those areas."

Giant chairman and chief executive officer Fred Holliger expressed disappointment in the FTC's opposition, noting that together, Western Refining and Giant would operate less than 1.5% of the United States' refining capacity.

"Over the past several years, mergers and acquisitions of refineries have created refining companies that dwarf our size and they have been allowed by the FTC," Holliger said in the release.

On Nov. 13, Western Refining announced it would acquire all of the outstanding shares of Giant for $77.00 per share in cash. Giant shareholders approved the transaction on Feb. 27.

In addition, the merger has received support from customers, government officials and industry associations.

Western is an El Paso, Texas, independent refiner and marketer.

Giant is a Scottsdale, Ariz., refiner and seller of petroleum products.

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