Valero Energy Corporation has completed the purchase of Chevron’s Pembroke refinery in Wales, as well as extensive marketing and logistics assets throughout the United Kingdom and Ireland. The purchase price was $730 million, excluding working capital, and was funded from available cash.
“We have been looking for several years at available downstream assets in western Europe that would expand our geographic footprint,” said Joe Gorder, Valero’s President for Europe. “We believe this acquisition fits perfectly, and that we are acquiring one of the finest refining, marketing and logistics operations in all Europe.”
Chevron also confirmed completion of the deal, which means, with effect from August 1, 2011, Chevron Limited is now part of the Valero family of companies.
Under the agreement Valero is required to change the legal name of Chevron Limited and its subsidiaries, to remove references to ’Chevron’ and other proprietary names.
Chevron will retain its upstream, lubricants and Oronite additives businesses in Europe, as well as its aviation business in Sweden, Greece and the Benelux.
Chevron’s remaining UK lubricants and trading businesses will continue to operate under the name Chevron Products UK Limited.
Valero Energy Corporation, through its subsidiaries, is an international manufacturer and marketer of transportation fuels, other petrochemical products and power. Valero assets include 15 petroleum refineries with a combined throughput capacity of approximately 2.9 million barrels per day, 10 ethanol plants with a combined production capacity of 1.2 billion gallons per year, and a 50-megawatt wind farm. Valero is also one of the largest retail operators with approximately 6,800 retail and branded wholesale outlets under the Valero, Diamond Shamrock, Shamrock and Beacon brands in the United States and the Caribbean; Ultramar in Canada; and Texaco in the United Kingdom and Ireland. Based in San Antonio, Valero is a Fortune 500 company with approximately 20,000 employees.