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Valero's Acquisition of UDS Wins Shareholder Approval

In special meetings yesterday, shareholders of Ultramar Diamond Shamrock Corp. (UDS) and Valero Energy Corp. overwhelmingly approved the proposed acquisition of UDS by Valero.

As part of the deal, first announced in May, Valero would acquire UDS in a cash and stock transaction valued at approximately $6 billion. The deal, which is still pending all of the required regulatory approval, is expected to close by the end of the year, the companies said in a joint release.

Upon approval Valero, which only recently jumped into the retailing sector when it acquired 60 company-owned stores and a jobber network of more than 250 sites from Exxon as part of its merger with Mobil Corp., would become one of the dominant convenience store players in the country.

The new organization, which will remain under Valero's banner, would employ 23,000 people in the U.S. and operate 13 refineries with a total throughput capacity of nearly two million barrels a day. The would also lift Valero's annual revenues to $32 billion and total assets of more than $10 billion.
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