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)
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