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- 01 Oct
Valero sees advantages to spinning off their retail fuel division vs. selling
Ever since Valero reported in their most recent quarterly earnings that they would like to divest their retail stores, there has been all kinds of speculation around what that divestiture might look like. Recently Reuters released a story that several large c-store chains were lining up as buyers.
But in an interview with the San Antonio Business Journal, Valero spokesman Bill Day explained the company is still reviewing different types of transactions. He explained that the tax bill for a spinoff would be less than the tax bill for selling the stores. “There are certain tax advantages to Valero to do a spinoff to our shareholders rather than a sale to an outside entity. So that tax advantage would have to be surmounted if another company were to come and make an offer.”
The Valero retail division operates 1027 company owned stores, all of which use PriceAdvantage for their fuel price management software. In the latest quarter, the retail division set a new record for their operating income, with retail fuel margins of $0.303 per gallon and increased fuel volumes from the same period last year.
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