Valero, Plains All American Pipeline to Terminate Acquisition Agreement

Valero Energy Corporation and Plains All American Pipeline, LP.  have mutually agreed to terminate the agreement providing for the acquisition by a subsidiary of Valero of two petroleum storage and distribution terminals located in Martinez and Richmond, California owned by a subsidiary of Plains.

After an extensive investigation, the Federal Trade Commission (FTC) elected not to pursue any regulatory action with respect to the proposed transaction, but upon the conclusion of the FTC’s investigation, the Office of the Attorney General for the State of California filed suit in United States District Court for the Northern District of California, seeking to block the transaction. Despite the fact that the court denied the Attorney General’s motion for a temporary restraining order and its motion for a preliminary injunction, Plains and Valero have each decided that it is in their best interest to terminate the transaction rather than endure the continued uncertainty that a lengthy trial would create for the California-based employees and customers of the terminals, as well as the considerable expense associated with defending a taxpayer-funded lawsuit.

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