Shares of NuStar Energy L.P. (NYSE:NS) surged over 15% intra-day today following the announcement of its acquisition by Sunoco LP (NYSE:SUN) in an all-equity transaction valued at $7.3 billion, inclusive of assumed debt.

Under the terms of the agreement, NuStar common unit holders will receive 0.400 shares of Sunoco for each common unit they hold. This exchange ratio represents a 24% premium based on the 30-day Volume Weighted Average Prices (VWAPs) of both companies as of January 19, 2024, and a 31% premium over NuStar's last closing price.

The acquisition has received approval from both companies' boards. They anticipate achieving at least $150 million in run-rate synergies by the third year following the deal's closure.