Valero, the largest U.S. refiner, is reportedly interested in acquiring a U.K. refinery from Chevron for $1 billion to $1.5 billion. Sources with knowledge of the matter said a deal could be reached as soon as March, according to Bloomberg News.
Chevron (CVX), the second-largest U.S. oil company, has been shopping its Pembroke refinery in Wales since last year. Like some of its integrated rivals, California-based Chevron has been looking to sell downstream assets to raise cash to fund more lucrative exploration and production activities.
The Bloomberg report did not say if there were other interested bidders in addition to Texas-based Valero (VLO). Valero, which has not made any purchases since 2005, said it is looking at European refineries because there plenty on the market.
Valero is being advised by Barclays Plc, while Chevron is working with Deutsche Bank AG, Bloomberg reported, citing the sources with knowledge of the deal.