Herbert Smith has advised Chevron Global Energy Inc., a subsidiary of Chevron Corporation, one of the world’s leading integrated energy companies, on the sale of Chevron Limited, the entity which holds the Pembroke Refinery, as well as its fuel marketing and aviation business in the United Kingdom and Ireland to a wholly owned subsidiary of the US energy company, Valero Energy Corporation, which was announced today
The sale price is $730 million, plus an additional payment estimated to be $1 billion for Chevron Limited’s inventory and other items. The sale is subject to regulatory approval and is expected to close during the second half of 2011.
Under the terms of the deal, Valero will acquire the Pembroke Refinery, approximately 1,000 Texaco-branded retail service stations in UK and Ireland, a commercial and industrial fuels business, seven equity-owned terminals, shareholdings in four pipelines, eight aviation facilities and related support and trading operations and will retain the right for the company to use the Texaco retail brand in the UK and Ireland for 20 years. Chevron will retain its upstream, finished and marine lubricants, and Oronite businesses in the UK and Ireland.
The deal is the second and larger part of a wider transaction, which also involved the sale of Chevron’s Spanish retail business to CEPSA, which was announced in February and on which Herbert Smith also advised.
Commenting on the deal, partner Simon Tysoe said:
“We are delighted to have helped Chevron on this important disposal programme. There are number of UK refinery sale processes ongoing so it is great to have played a part in ensuring Chevron has been the first to reach definitive sale agreements. Our relationship with Chevron is a long and highly valued one, made stronger by this transaction.”