Alon USA Entertaining Potential Purchase by Delek

BRENTWOOD, Tenn. — Delek US Holdings Inc. is currently in talks to purchase some or all of Alon Israel Oil Co. Ltd., parent company to Alon USA Energy Inc.

According to a Tuesday filing by Delek with the U.S. Securities and Exchange Commission, Alon's board of directors formed a special committee consisting of independent directors and authorized it to, among other things, "review, negotiate and evaluate the company's request and make a recommendation to the Alon USA board of directors in connection therewith."

In its filing, Brentwood-based Delek stressed the merger talks are ongoing and "there can be no assurances that an agreement for [Delek] to acquire Alon Israel shares will be reached."

If a deal is reached, it will have ripple effects on the convenience store industry. Assuming Delek purchases Alon in its entirety, Delek would add 295 Alon USA convenience stores, which primarily operate in Texas and New Mexico. Dallas-based Alon is also the largest 7-Eleven licensee in the United States.

Delek already operates c-stores under the MAPCO Express, MAPCO Mart, East Coast, Fast Food and Fuel, Favorite Markets, Delta Express and Discount Food Mart banners.

If a deal is consummated, Delek would operate a total of approximately 660 c-stores.

Alon USA Energy shares, traded on the New York Stock Exchange, reacted favorably to the news, rising 5 percent in Tuesday afternoon trading.