— Sunoco Energy Inc. is shutting down its racing business, the company announced Friday, a move that would allow it to refocus on refining its own fuel.
The company said it expects to close its racing operations by the end of 2020 and the fuel business by the beginning of 2021.
Sunoco plans to spend $7.4 billion to buy an independent refinery in Texas.
The transaction will help Sunoco focus on refining and selling its fuel, including diesel, gasoline and jet fuel, the oil company said.
It expects the transaction to close in 2019.
Sunaco has said it is looking for ways to increase production and sell its fuel.
In a statement, Sunoco Chief Executive Officer John R. Sutter said the merger is “a natural fit” with the company’s strategy of improving fuel quality.
The company expects to make significant savings on refining costs and the opportunity to focus on product development and distribution is too great to pass up,” Sutter wrote.
Sunoco will continue to refine fuel, but will focus on its other core business of refining natural gas.
The merged company will be able to produce gasoline, diesel and jet fuels from its existing operations in Texas and New Mexico.