Bloomberg reports that Valero Energy Corporation (VLO), the largest U.S. oil refiner, is in talks to buy Chevron Corp.’s (CVX) U.K. refinery for $1 billion to $1.5 billion. According to Bberg sources, an agreement may be reached as soon as next month.
Chevron has been seeking a buyer for the Pembroke refinery in Wales for almost a year. It’s unclear whether there are other bidders for the asset besides San Antonio-based Valero, and talks could still break down, Bberg said.
Earlier this month, Valero Chief Executive Officer Bill Klesse said at a conference that a properly structured deal for a refinery would add “a lot of shareholder value.”
Valero is being advised on the deal by Barclays Plc (BCS), while Chevron is working with Deutsche Bank AG (DB).
VLO lost $0.35, or 1.30 percent, to $27.83 at 3:45 p.m. New York time in NYSE trading. Chevron, based in San Ramon, California, rose $2.23, or 2.20%, to $102.49 on the New York Stock Exchange.