By the OGJ Online Staff
HOUSTON, Sept. 27 -- At a special meeting Thursday in San Antonio, Valero Energy Corp. shareholders approved the company's proposed $6 billion acquisition of Ultramar Diamond Shamrock Corp. to become the second largest US refiner.
That merger is expected to close by the end of this year, pending additional regulatory reviews and other customary conditions (OGJ Online, May 7, 2001).
"We're combining the two best independent refining and marketing companies to make the premier refiner and marketer in the US. The transaction is great news for our shareholders because it's expected to be highly accretive to earnings, cash flow and returns," said Bill Greehey, Valero's chairman and CEO.
The $6 billion price tag includes $4 billion in equity and $2 billion in assumed debt.
Total consideration to be paid UDS stockholders equates to a fixed exchange of 1.228 shares of Valero common stock for half of the outstanding shares of UDS common. Following that merger, Valero will have 23,000 employees in the US and Canada, 13 refineries, and a throughput capacity of 2 million b/d. It also will be one of the largest retailers of gasoline with more than 5,000 outlets in the US and Canada.
Valero owns and operates six refineries in Texas, California, Louisiana, and New Jersey with a capacity of more than 1 million b/d, making it the nation's largest independent refiner.
It markets products in 34 states through an extensive wholesale bulk and rack marketing network, and in California through 80 Valero branded retail and 270 other retail distributor locations
