Dallas-based petroleum refiner, Holly, and Houston-based Frontier Oil are merging to form the second-biggest U.S. independent refiner by market capitalization, Financial Times reports. The new Dallas-based company, HollyFrontier, will have a combined market capitalization of about $6 billion, enterprise value of $7 billion and nearly $1 billion of net debt. Holly shareholders will own about 51% of the new company, while Frontier shareholders are expected to own about 49% as per the deal, expected to be completed early in the third quarter of 2011. Deutsche Bank Securities and Morgan Stanley are providing financial advice to Holly, while Citigroup and Credit Suisse Securities are acting as financial advisers to Frontier.

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