Sunoco In Talks with Carlyle for JV

Sunoco Inc. said on Monday it is in exclusive talks with private equity firm Carlyle Group on a potential joint venture for the refiner’s 330,000 barrel-per-day refinery, Reuters reported. Sunoco would put the refinery assets into the joint venture in exchange for a nonoperating minority interest in the venture, it said in a statement.

(Reuters) – Sunoco Inc said on Monday it is in exclusive talks with private equity firm Carlyle Group LP on a potential joint venture for the refiner’s 330,000 barrel-per-day refinery and would keep operating the plant at least through July.

Under the terms of the deal being considered, Sunoco would put the refinery assets into the joint venture in exchange for a nonoperating minority interest in the venture, it said in a statement. Carlyle would contribute cash to the joint venture, hold the majority interest and oversee day-to-day operations of the joint venture and the plant.

Sunoco did not disclose any financial terms for the deal. If it could not reach an agreement with Carlyle, the refiner said it would plan to idle the main processing units at the refinery in August.