Valero Energy Stock: Refinery Acquisition in Houston - Global Stock Exchange
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Valero is making an acquisition right on its own doorstep. The group is taking over the site of the decommissioned Houston refinery from LyondellBasell and plans to ramp capacity back up there. The stock gained in pre-market trading. The subsidiary Valero Refining-Texas is acquiring all shares in LYB Houston Hub Holdings. The purchase price is 30.5 million dollars, subject to customary closing adjustments. The company has signed a binding agreement to this effect. The site covers approximately 700 acres and borders directly on Valero's existing refinery at the Houston Ship Channel. It was previously in operation as a refinery. The closing is subject to antitrust clearance under the Hart-Scott-Rodino Act and is expected by the end of 2026. Initially, the group plans to restart a processing capacity of 165,000 barrels per day for light, sweet crude oil by the end of 2027. Over the long term, the location also opens up the option to invest in the processing of heavy, sour crude oil. Such complex facilities are considered high-margin, but require higher investments. Group CEO Lane Riggs speaks of a unique opportunity to expand the footprint on the US Gulf Coast "at a fraction of replacement costs." The acquisition is intended to deliver an attractive financial return and fit into disciplined capital allocation. For Valero, which operates 14 refineries in the US, Canada, and the...
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