Corrected: US Tesoro receives FTC approval to acquire BP's Carson refinery

17 May 2013 20:44  [Source: ICIS news]

Correction: In the ICIS story headlined "US Tesoro receives FTC approval to acquire BP's Caron refinery" dated 17 May, please read in the first paragraph ... for $2.375bn (€1.853bn) ... instead of ... for $2.375m (€1.853m)".... Please read in the second paragraph ... the purchase price of $1.075bn and the current market value of inventory estimated at $1.3bn ... instead of ... the purchase price of $1.075m and the current market value of inventory estimated at $1.3m.... A corrected story follows.

HOUSTON (ICIS)--Tesoro has received clearance from US antitrust regulators to acquire BP’s 265,000 bbl/day Carson refinery and assets in southern California for $2.375bn (€1.853bn), the US refiner said on Friday.

The Federal Trade Commission (FTC) said the deal, which included the purchase price of $1.075bn and the current market value of inventory estimated at $1.3bn, is "not likely to lessen competition substantially in violation" of antitrust laws.

Announced in August, Tesoro said it expects to close on the transaction during the second quarter, subject to customary closing conditions.

Tesoro said it will combine its existing Los Angeles refinery with the newly acquired and adjoining Caron refinery and reconfigure the two West Coast systems to drive operational synergies.

It also plans to drive additional value from the crude oil sourcing flexibility expected through the recently announced unit train unloading and marine loading facility at the Port of Vancouver in Washington.

“This transaction is a unique opportunity for Tesoro to combine the best aspects of two West Coast refining, marketing and logistics businesses, resulting in a more efficient world-scale integrated refining, marketing and logistics system,” Tesoro CEO Greg Goff said.

In addition to the refinery, the acquisition includes about 800 dealer-operated retail stations in southern California, Nevada and Arizona, as well as the ARCO brand, associated trademarks and a master franchisee license for the ampm convenience store brand.

The transaction also includes 51% ownership in a nearby 400MW gas Watson cogeneration facility and a 350,000 tonne/year anode coke calcining operation.

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($1 = €0.78)

By: Tracy Dang
+1 713 525 2653

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