PBF Energy to buy Exxon's Torrance, Calif. refinery
PBF Energy Inc. said Wednesday it's going to buy Exxon Mobil Corp.'s Torrance, Calif., refinery and other related assets for $537.5 million in cash, stock and debt. The 155,000 barrel-a-day Torrance refinery brings PBF's capacity to approximately 900,000 barrels a day, the Parsippany, N.J., company said. The deal is expected to be "immediately accretive to earnings" and to close in the second quarter, PBF said. The refinery will be restored to full working condition, the company said. The acquisition also includes pipelines, terminals, and storage facilities. Part of the refinery exploded in February, and the state of California recently fined Exxon more than $500 million in connection with that explosion. In a separate statement, Exxon said it remains "committed to a large, global refining portfolio as part of our integrated business strategy." About 700 employees and 700 contractors work at the refinery and associated facilities, and the employees are expected to be offered positions with PBF, Exxon said. Shares of PBF rose 3.8% in late trading Wednesday after ending the regular trading day up 2.2%. Exxon shares were flat in after hours after being up 1.9% for the day.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.