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Article: Oil Refiner Valero to Buy Premcor for $7B
- Article from:
- AP Online
- Article date:
- April 25, 2005
- Author:
CopyrightThis material is published under license from the Associated Press. All inquiries regarding rights should be directed to the Associated Press. (Hide copyright information)
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DAVID KOENIG, AP Business Writer
AP Online
04-25-2005
Dateline: DALLAS
Valero Energy Corp.'s $6.9 billion purchase of Premcor Inc. _ a deal that would create the largest oil refiner in North America _ comes as high prices drive up the industry's profit margins.
Analysts said Valero's move is unlikely to offer immediate help to motorists weary of paying more than $2 a gallon for gasoline. But company officials pledged to improve efficiency and capacity at the four refineries it is buying, which could eventually ease pressure on prices.
Valero hopes to complete the cash and stock deal by Dec. 31, but it could face regulatory hurdles because both Valero and Premcor operate large refineries in ...