Oil refiner merger planned - East Valley Tribune: Business

Oil refiner merger planned

Font Size:
Default font size
Larger font size

Posted: Tuesday, April 26, 2005 6:35 am | Updated: 10:12 am, Fri Oct 7, 2011.

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 Valero and Premcor operate large refineries in the Northeast.

Valero Chairman and Chief Executive Officer William Greehey predicted that antitrust regulators will approve the acquisition.

  • Discuss

'EV Women in Business'

A PDF of the Tribune special section, featuring a mix of sponsored content from our loyal advertisers and newsroom coverage of the East Valley business community.

Your Az Jobs