Despite last-ditch government regulators’ efforts to stop it, a Texas oil company bought Scottsdale-based Giant Industries on Thursday in a deal worth an estimated $1.4 billion.
At least for the foreseeable future, Giant will retain its Scottsdale headquarters, staff and even name, said Giant CFO Mark Cox, now senior vice president of the new owner, Western Refining Co.
“There are no immediate changes other than I have a new boss,” Cox said, “We are not anticipating any loss of jobs. Giant will be a wholly owned subsidiary of Western. In the long term, who knows, but there are not going to be significant changes.”
Giant has about 125 employees at its Scottsdale corporate offices, handling all administrative functions such as accounting, human resources, retail management, refining management and corporate officers.
The company employs about 3,000 nationwide at its refining, retail and distribution operations, including “a couple hundred” people at Valley-based subsidiary Phoenix Fuel, Cox said.
The 10th U.S. Circuit Court of Appeals denied the Federal Trade Commission’s request Thursday for an injunction halting the transaction while it lodged an appeal of a District Court ruling earlier in the week.
The FTC contends the merger of the two small, independent oil companies would cause the supply of gasoline to drop and prices to rise in northern New Mexico.
The U.S. District Court for the District of New Mexico, after hearing the arguments, disagreed and also denied the FTC’s later attempt to put the deal on ice while it lodged an appeal.
That paved the path for El Paso-based Western Refining to buy Giant for $77 a share plus debt assumption just hours after the 10th Circuit’s decision.