Refiner Valero To Obtain 7 VeraSun Plants
By DIRK LAMMERS
SIOUX FALLS, South Dakota (AP) ¿ Valero Energy will buy seven ethanol plants from VeraSun Energy for $477 million, the largest biofuel buyout in terms of production capacity.
VeraSun, the second largest U.S. ethanol producer, filed for bankruptcy protection in October and on Wednesday, a Delaware bankruptcy court approved the sale.
Valero won an auction for the assets in court on Tuesday. The sale is expected to close in April.Also involved in the bidding was agribusiness giant Archer Daniels Midland Co. Valero becomes the first traditional refiner to cross over into ethanol production. The sale could give other major energy companies a benchmark price for the assets of ethanol producers now under tremendous financial strain. Ethanol industry leader Poet LLC is also shopping around. Valero Energy Corp., the largest U.S. independent oil refiner, will acquire plants in Aurora, South Darkota; Charles City, Fort Dodge, and Hartley, Iowa; Welcome, Minnesota; Albion, Nebraska; and a development site in Reynolds, Indiana.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV