Valero Completes UDS Acquisition

SAN ANTONIO -- Valero Energy Corp. has completed its $4 billion takeover of Ultramar Diamond Shamrock Corp. (UDS) creating one of the nation's largest oil refining companies.

The merger of the San Antonio-based companies, which will use the Valero name, now operates a branded convenience store network of more than 5,000 stores and 12 refineries with a refining capacity of two million barrels per day.

"We completed this merger in record time -- only seven months -- and without any layoffs," said Bill Greehey, Valero's chief executive, as the deal concluded. "Today, Valero is a more competitive company with one of the best U.S. refining systems, a strong retail presence, a growing mid-stream logistics business and the best workforce in our industry. We've created a very complementary system that has significant synergies and opportunities for growth."

The new Valero has more than 20,000 employees in the United States and Canada. It is expected to have annual revenues of $32 billion and total assets of about $14 billion.

The Federal Trade Commission voted 4-0 not to oppose the deal last month after Valero signed a consent decree that requires them to sell Ultramar's 168,000 barrel-per-day (BPD) Golden Eagle Refinery in the San Francisco Bay Area and 70 convenience stores in that market. The company has one year to sell the properties.