Valero, the largest U.S. refiner, is reportedly close to acquiring Chevron's Pembroke refinery in Wales for $2 billion, Bloomberg News reported, citing sources with knowledge of the batter. A deal for the refinery, which Chevron has been trying to sell since last year, could be announced in the next few days.
While Texas-based Valero (VLO) has not purchased any refineries since 2005, the company has sold four since then. The company has been looking to purchase a European refinery for several years.
Chevron (CVX), the second-largest U.S. oil company, like many of its rivals has been looking to sell downstream assets in an effort to raise cash to be devoted to more lucrative exploration and production projects. Valero is expected to pay for Pembroke from cash on hand.
The refinery can process 210,000 barrels of crude a day, or about 11 percent of total U.K. capacity, according to Bloomberg data.