Valero Energy Corporation and Plains All American Pipeline, L.P. Plan to Challenge Attempt to Block Proposed Acquisition by V...
July 12 2017 - 5:36PM
Earlier today, certain media outlets erroneously reported that the
California Attorney General has filed suit to enjoin “a merger”
between Valero Energy Corporation, Valero Energy Partners LP, and
Plains All American Pipeline LP. The erroneous report was
apparently based on a filing by the California Attorney General in
the United States District Court for the Northern District of
California, mischaracterizing as a “merger” a proposed transaction
involving the acquisition by a subsidiary of Valero Energy
Corporation (NYSE:VLO) of two petroleum storage and distribution
terminals located in Martinez and Richmond, California currently
owned by a subsidiary of Plains All American Pipeline, L.P.
(NYSE:PAA). It is this proposed acquisition of certain assets that
the California Attorney General is seeking to block.
On July 10, the United States District Court for
the Northern District of California denied the California Attorney
General’s motion for a temporary restraining order (TRO) seeking to
block the proposed transaction. The Office of the Attorney General
filed its motion despite the fact that the Federal Trade Commission
(FTC) recently ended an extensive investigation of the same
transaction, ultimately concluding that the transaction merited no
regulatory action.
Valero Chairman and CEO Joe Gorder and Plains Chairman and CEO
Greg Armstrong stated that they are disappointed by the California
Attorney General’s action, given the FTC’s decision to let the
transaction proceed and also given that the two companies do not
compete in California. As the FTC and California Attorney General
know, Valero plans to meaningfully expand capacity at both the
Martinez and Richmond Terminals, which will benefit customers as
well as California consumers. Valero and Plains All American will
continue to vigorously defend the planned transaction in federal
court.
About Valero Valero Energy Corporation, through
its subsidiaries, is an international manufacturer and marketer of
transportation fuels and other petrochemical products. Valero,
a Fortune 50 company based in San Antonio, Texas, with
approximately 10,000 employees, is an independent petroleum
refiner and ethanol producer, and its assets include
15 petroleum refineries with a combined throughput capacity of
approximately 3.1 million barrels per day and 11 ethanol
plants with a combined production capacity of 1.4 billion
gallons per year. The petroleum refineries are located in the
United States (U.S.), Canada and the United Kingdom (U.K.), and the
ethanol plants are located in the Mid-Continent region of the
U.S. In addition, Valero owns the 2 percent general partner
interest and a majority limited partner interest in Valero Energy
Partners LP, a midstream master limited partnership. Valero
sells its products in both the wholesale rack and bulk markets, and
approximately 7,400 outlets carry Valero’s brand names in the
U.S., Canada, the U.K. and Ireland. Please visit www.valero.com for
more information.
Valero Contacts: |
|
|
|
John Locke |
Lillian Riojas |
VP, Investor
Relations |
Director, Media
Relations & Communications |
210.345.3077 |
210.345.5002 |
About Plains Plains All
American Pipeline, L.P. is a publicly traded master limited
partnership that owns and operates midstream energy infrastructure
and provides logistics services for crude oil, natural gas liquids
("NGL"), natural gas and refined products. PAA owns an extensive
network of pipeline transportation, terminalling, storage and
gathering assets in key crude oil and NGL producing basins and
transportation corridors and at major market hubs in the United
States and Canada. On average, PAA handles over 4.7 million barrels
per day of crude oil and NGL in its Transportation segment. PAA is
headquartered in Houston, Texas. More information is available at
www.plainsallamerican.com.
Plains Contacts: |
|
|
|
Roy
Lamoreaux |
Brad Leone |
VP, Investor Relations
& Communications |
Director,
Communications |
866.809.1291 |
866 809.1290 |
Plains All American Pipe... (NYSE:PAA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Plains All American Pipe... (NYSE:PAA)
Historical Stock Chart
From Apr 2023 to Apr 2024