Valero Energy to complete retail business spinoff next quarter: CEO
Houston (Platts)--6Feb2013/457 pm EST/2157 GMT
Valero Energy expects to next quarter separate its retail business from
the remainder of the company, CEO Bill Klesse said Wednesday.
The new retail company is named CST Brands, Klesse said during a
webcasted presentation given at the 2013 Credit Suisse Energy Summit in Vail,
Valero expects to distribute to shareholders 80% of CST Brands
outstanding shares to trade on the New York Stock Exchange under the ticker
symbol CST, according to the presentation. CST Brands was formally known as
Corner Store Holdings.
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Valero expects CST Brands to be one of the largest independent retailers
of transportation fuels in North America, with nearly 1,900 sites in the US
and Canada. Of the sites, 1,032 will be located in the US, with 61% of those
in Texas, and 848 will located in Canada. A "New to Industry" retail site
program offers expansion opportunities for the new company, according to the
"In the Eagle Ford [area in Texas], for instance, any new store you are
building down there [will sell] huge, huge volumes," Klesse said.
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