Ultramar/Diamond Shamrock merger to increase geographic diversity of revenues

Journal Article · Fri Nov 01 04:00:00 EST 1996 · Fuel Technology amp Management

OSTI ID:525855

Hemminghaus, R ^[1]; Gaulin, J ^[2]

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1. Diamond Shamrock, San Antonio, TX (United States)
2. Ultramar, Greenwich, CT (United States)

With the cost savings, operating synergies, and capital efficiencies expected from the merger between Diamond Shamrock and Ultramar, announced on September 23, to form the new Ultramar Diamond Shamrock Corp., the industry can expect tremendous growth from the merged companies. The new corporation is now the third largest independent refiner in the U.S. and Canada. Both companies contained a diversified asset portfolio ranging from substantial RFG and CARB gasoline production, petrochemical products (e.g., polymer grade propylene), and aggressive retail marketing strategies. The new corporation expects to convert each of Diamond Shamrock shares into 1.02 shares of Ultramar common stock by the end of 1996. In an exclusive press interview, company officials reiterated their enthusiasm about the merger of equals that will leverage each company`s strengths resulting in a company better positioned strategically. In addition, the geographic spread of the combined businesses should lower income volatility in risk. The new corporation will benefit from its critical mass and have higher earnings and returns due to cost and operational synergies.

• OSTI ID: 525855
• Journal Information: Fuel Technology amp Management, Journal Name: Fuel Technology amp Management Journal Issue: 6 Vol. 6; ISSN FTMAFH; ISSN 1087-4003
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
INCOME
MANAGEMENT
MARKET
OPERATION
ORGANIZING
PETROLEUM REFINERIES
PROFITS