Alon USA Reviewing Number of Strategic Alternatives
DALLAS — Alon USA Energy Inc. formed a special committee to review a number of strategic alternatives, including a potential business combination with Delek US Holdings Inc.; the analysis of capital investments; shareholder distributions; or a sale or merger and spinoff or separation of a selected business.
Alon stressed in a news release the special committee, comprising directors who have no affiliation with the company, has not made any decision to pursue any particular transaction, and there is no assurance any transaction will be approved or consummated.
As CSNews Online previously reported, a merger with Delek appeared to be the most likely option. Delek already owns 48 percent of the shares of Alon USA, and in an August 2015 earnings call, Delek President and CEO Uzi Yemin said his company is “not in the business” of owning only 48 percent of any publicly traded company. However, Yemin said Brentwood, Tenn.-based Delek should acquire all of Alon in less than four years from this August date, but did not speculate further. At this point, this transaction has yet to materialize.
Dallas-based Alon USA Energy Inc. is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores. The company did not mention if a spinoff or sale of its retail assets was being considered.
In addition to its retail holdings, Alon is an independent refiner and marketer of petroleum products and owns 100 percent of the general partner and 81.6 percent of the limited partner interests in master limited partnership Alon USA Partners LP, owner of a crude oil refinery in Big Spring, Texas.