US Tesoro to close in Q2 on acquisition of BP's Calif refinery

02 May 2013 21:58  [Source: ICIS news]

HOUSTON (ICIS)--US refiner Tesoro has financing plans in place and is nearing the end of the regulatory review process for its $2.5bn (€1.9bn) acquisition of BP’s Carson refinery in California, Tesoro said on Thursday.

The transaction is expected to close at the end of the second quarter “without any material changes” to what was proposed, Tesoro CEO Gregory Goff said during a conference call on the company’s Q1 earnings.

“We remain very confident in our ability to close this transaction, creating a high-quality, worldscale refining complex that provides opportunities to achieve economies of scale, reduce costs, improve the environment and benefits consumers while improving Tesoro's competitive profile,” Goff added.

Currently, Tesoro is working on integration activities that include focusing on the days immediately before and after the change in control, as well as making sure that all systems and processes will be effective, said Daniel Romasko, executive vice president of operations.

“High-level synergy work's already been completed as consistent with what we've previously announced,” Romasko said. “We get to do a great deal more detailed look on data of change in control when the anticompetitive issues are no longer an issue.”

Earlier this week, UK-based energy giant BP said it remains on track to sell the 266,000 bbl/day Carson refinery.

($1 = €0.76)

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By: Tracy Dang
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