Both companies’ boards of directors have approved the transaction, and the sale is expected to close in July 2008, subject to regulatory approvals. The transaction will also include working capital at the refinery, which will be valued at market prices at closing.
Valero had announced earlier in 2008 that it would explore strategic alternatives for the Krotz Springs refinery. It is also exploring options for its refineries in Aruba, Memphis, Tennessee and Ardmore, Oklahoma.
Bill Klesse, chairman and CEO of Valero, said: The Krotz Springs refinery is a good fit for Alon, and this transaction is a good deal for Valero’s stockholders. This transaction is consistent with our strategy to concentrate on our core refineries where we see higher returns for the long run.
