11 March 2011 13:56 [Source: ICIS news]
TORONTO (ICIS)--Valero has agreed to acquire Chevron’s 220,000 bbl/day UK Pembroke refinery and related assets in a $730m (€533m) cash deal, the US-based oil companies said on Friday.
On completion of the deal, expected in the third quarter, Valero will also acquire working capital and inventories valued at about $1bn, the said.
The Pembroke facility in ?xml:namespace>
About 5% of the refinery's products are chemicals and liquefied petroleum gas (LPG), it added.
Valero’s purchase price includes ownership interests in four major product pipelines and 11 fuel terminals, a 14,000 bbl/day aviation fuels business, and a network of more than 1,000 Texaco-branded wholesale sites, it said.
"This acquisition of quality assets enhances our portfolio and gives us opportunities for profitable growth,” Valero CEO Bill Klesse said.
“After exiting refining in the US East Coast last year, this acquisition provides an opportunity for our company to supply that market more competitively, when it's economic to do so,” he added.
Chevron said the sale is in line with its strategy to focus its downstream business primarily in
However, Chevron would retain its upstream, lubricants and Oronite additives businesses in Europe, as well as its aviation business in
Chevron added that it is soliciting bids for “certain operations” in the
($1 = €0.72)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|