Home › Forums › Refining Community › Refinery News › Delek (Alon) purchase Ergon/Lion Refineries
This topic contains 1 reply, has 1 voice, and was last updated by Charles Randall 11 years, 3 months ago.
-
AuthorPosts
-
March 21, 2011 at 4:40 pm #2335
Delek U.S. To Purchase Ergon Ownership In Lion Oil Co. Of El Dorado
By Joanna Kauffmann 3/21/2011 10:31:18 AMErgon Inc., a crude oil processor headquartered in Jackson, Miss., announced Monday that it had entered into an agreement to sell its 53.67 percent ownership in Lion Oil Co. of El Dorado to Delek US Holdings Inc., the U.S. subsidiary of Delek Group of Tel Aviv, Israel.
Lion Oil markets petroleum products, and operates a refinery in El Dorado that produces more than 75,000 barrels of sour crude oil a day. Lion Oil also operates as an independent refiner of high-sulfur crude oil in a market that includes Arkansas, Tennessee, Missouri, Mississippi and northern Louisiana.
Currently, Delek US holds a 34.6 percent minority interest in Lion Oil. Delek’s deal with Ergon will bring Delek’s total equity ownership in Lion to 88.3 percent at the close of the transaction.
According to a Delek news release, the company will take over Ergon’s interest in Lion Oil for a combination of cash, stocks and the payment or replacement of all debt currently owed by Lion to Ergon.
As part of the transaction, Lion will transfer its 100 percent ownership interest in the Paline Pipeline Co. to Ergon, but will retain its Arkansas operations, including its El Dorado refinery and its terminal operations and its subsidiaries including Lion Oil Trading & Transportation Inc., Magnolia Pipeline Co., El Dorado Pipeline Co. and J. Christy Construction Co. Inc. Ergon Asphalt & Emulsions Inc. will also continue to market retail paving asphalt from Lion’s El Dorado refinery.
The transaction will more than double Delek’s total production capacity. -
March 21, 2011 at 4:43 pm #5198
Here is update on Delek purchase of Ergon/Lion which brings it’s ownership to 88% Lion and doubles Delek’s capacity of its Tyler refinery. Delek already owned ~35% of Lion Oil prior to purchase.
The Lion/Ergon refineries mentioned are small asphalt refineries like El Dorado but most (Kansas/Missouri/Mississippi/Tennessee) are not shown on OGJ US Refinery Capacity summary 2011 even though they are still operating – but can be seen on DOE/EIA refinery survey. The Ergon Refinery in West Virginia was not mentioned.
Regards
-
AuthorPosts
You must be logged in to reply to this topic.