Energy Transfer to Buy Gasoline Retailer for $1.8 bln

Expands Energy Transfer's retail business; Offers Susser shareholders $80.25 in cash, or 1.4506 units. Susser shares rise 14 pct before the bell.

Pipeline company Energy Transfer Partners LP said it would buy Susser Holdings Corp in a cash-and-stock deal valued at $1.8 billion to expand its retail gasoline business to Texas, New Mexico and Oklahoma.

Susser shareholders will have the option to receive either $80.25 in cash, or 1.4506 Energy Transfer common units, or a combination of both, for each share held.

The cash offer represents a premium of 41 percent to Susser stock's Friday's close.

Susser's shares rose 14 percent before the bell on Monday.

Energy Transfer Partners's retail marketing business, Sunoco, operates more than 5,000 retail stores, primarily on the East Coast.

Susser Holdings operates 630 retail convenience stores that sell gasoline under the "Stripes" brand and also other brands.

Synergy opportunities from the deal are expected to exceed $70 million annually, the companies said.

Barclays (BCS) and Credit Suisse were financial advisers to Energy Transfer, while Vinson & Elkins acted as the legal counsel.

BofA Merrill Lynch was Susser's financial adviser and Gibson, Dunn & Crutcher LLP the legal counsel.

Energy Transfer Partners' shares closed at $55.80 on Friday on the New York Stock Exchange.

Reporting by Swetha Gopinath