Energy
Valero Takes the VeraSun Prize (VLO, ADM, VSUNQ)
Published:
Last Updated:
Valero Energy Corp. (NYSE:VLO) has won the auction for seven ethanol plants formerly owned by VeraSun Energy Corporation (VSUNQ), which is now in Chapter 11 bankruptcy. Valero will pay $477 million for the plants.
According to the AP, Archer Daniels Midland Inc. (NYSE:ADM) “participated” in the auction, but did not buy anything. ADM must be too busy looking at Brazilian sugar-cane ethanol producers.
Three other lender groups submitted bids totaling $576 million for other VeraSun refineries and properties. Valero will operate its new ethanol refineries through its Valero Renewable Fuels subsidiary.
Valero’s 52-week range is $13.94-$55/share. Shares closed at $18.50 yesterday. Buying ethanol refineries is likely to keep the price down closer to the bottom than to the top of that range.
Paul Ausick
March 18, 200
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
