Delek US (DK) Exploring Potential Acquisition of Petroleum Assets

Tag : Petroleum Refinery
June 27, 2008 4:24 PM EDT

In a Form 8-K filing with the SEC, Delek US Holdings (NYSE: DK ) today announced that it is currently exploring the potentialacquisition of certain petroleum refining, retail, and wholesalemarketing assets in the United States for a purchase price ofapproximately $1 billion. The assets include a petroleum refinerywith a capacity between 75,000 and 100,000 barrels per day thatproduces mainly light products, a refined products terminal, fueltransportation trucks, and the acquisition of, or entry intowholesale supply agreements with, between 400 to 450 stores.

Delek US is currently negotiating transaction terms and conductingdue diligence investigations within the context of an exclusivenegotiation period that expires at the end of July 2008. As part ofthe negotiations, and upon the request of Delek US, Delek Group,Ltd. (