Valero Enters Retail Market With ExxonMobil Buy

Valero Energy Corp. will buy ExxonMobil Corp.'s refinery in Benicia, Calif. The purchase also includes 80 company-owned retail stores and a 260-store distribution chain. The assets will be purchased for $895 million plus an amount of inventories and working capital, which will be based on market-related prices at closing. After acquiring the refinery, Valero will own and operate six refineries in the Gulf Coast, Northeast, and West Coast regions of the U.S. The acquisition also marks Valero's entry into retail operations. "It's hard to imagine a better strategic investment for Valero and its shareholders," says Bill Greehey, Valero's chairman of the board and CEO. "Not only will this acquisition position us for major growth opportunities, it will be immediately accretive to both earnings and cash flow."