Attorney General Becerra: Valero’s Abandoned Takeover of Independent Petroleum Distributor Is Welcome News for Californians and Competition
SACRAMENTO – California Attorney General Xavier Becerra today issued the following statement after Valero Energy Corporation and Valero Energy Partners LP (“Valero”) announced that they are abandoning their plans to take over the last independent petroleum distribution terminal in Martinez, California, from Plains All American Pipeline, LP. In State of California v. Valero Energy Corporation, Attorney General Becerra alleged that this proposed acquisition raised significant anti-competitive concerns and could result in higher gas prices at the pump for Californians:
“Today’s announcement is welcome news for all Californians, and it should send a strong message to the public: the California Department of Justice is committed to protecting consumers and competition.
“At the California Department of Justice, it’s our responsibility to combat threats to our state’s thriving and competitive marketplace. That’s why we took on this proposed acquisition. Simply put, we strongly believed that Valero's action could have suffocated open competition and led to higher gas prices for hardworking Californians. U.S. District Court Judge William Alsup's early ruling mirrored our legal team’s position, stating that the transaction would allow Valero to control gasoline sales ‘to further its own economic interest,’ and that its potential control over gasoline distribution for Northern California and Northern Nevada ‘raises serious concerns that this transaction will lead to higher prices at the pump.’”
“Going forward, let there be no doubt that the California Department of Justice will continue doing everything in its power to preserve a fair marketplace.”