SAN ANTONIO, Texas -- Valero Energy Corp. and Tesoro Petroleum Corp. said Thursday they have amended the terms of Valero's sale of an oil refinery and 70 retail gasoline outlets in northern California to Tesoro.
Original terms of the deal called for Tesoro to pay $1.075 billion for the Golden Eagle Refinery near San Francisco and the retail outlets plus an additional five-year earnout payment of up to $150 million based on the refinery's historical margins.
The two companies said they have now decided that Tesoro will pay an additional $50 million in lieu of the earnout payment, bringing the total price to $1.125 billion.
The revised deal is intended to circumvent possible concerns about the earnout payment on the part of federal or state regulators, the two companies said in a joint statement. They expect the amended deal to close in April.
Valero agreed to sell the 168,000 barrel-per-day Golden Eagle refinery to win the approval of the Federal Trade Commission for its acquisition of fellow independent refining company Ultramar Diamond Shamrock.
In a separate announcement, Tesoro on Friday said it plans a public offering of 20 million newly issued shares to help finance the deal.
