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On May 7, 2001, the Wall Street Journal reported that Valero Energy Corp. agreed to acquire Ultramar Diamond Shamrock Corp. for $4.03 billion in cash and stock. Valero will additionally assume approximately $2.1 billion of debt. This transaction transforms Valero from the fourteenth-largest domestic refiner at the outset of 2000 into the third-largest (and largest non-vertically integrated) refiner currently, pending approval. This acquisition increases Valero's motor gasoline retail outlets from 340 (all acquired from Exxon Mobil in May 2000) to approximately 5,000 (including more than 500 in Canada).
On June 4, 2001, Valero announced that it will lease El Paso Corporations' Corpus Christi refinery (originally owned by Coastal Corporation) for 20 years. Valero will pay El Paso $18.5 million per year for each of the first 2 years of the lease, with an option to buy the refinery at the end of the second year for $294 million. Additionally, Valero agreed to pay El Paso $105 million for inventories and working capital (see "Valero Executes Lease Agreements with Purchase Options for El Paso's Corporation Corpus Christi Refinery and Refined Product Logistics" in the Wall Street Journal).
The following links provide company-level data from various public sources to inform discussions of the Valero-Ultramar Diamond Shamrock merger. This data presentation is similar to data presentations that have been previously requested from EIA for other significant energy company mergers and/or corporate alliances.
Financial Analysis Team, Office of Energy Markets and End Use, Energy Information Administration, June 5, 2001
OR
National Energy Information CenterURL: http://www.eia.doe.gov/emeu/finance/mergers/vuindex.html
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