Valero To Buy Chevron's U.K. Refinery For $2B

Valero VLO, the largest U.S. refiner, is reportedly close to acquiring Chevron's CVX Pembroke refinery in the U.K. for $2 billion, Bloomberg News reported, citing sources with knowledge of the matter. The deal could be made public as soon as Thursday morning.

Chevron, the second-largest U.S. oil company, has been trying to sell the refinery, which is located in Wales, for nearly a year. Like its rivals, Chevron has been selling some downstream assets to raise cash for oil exploration and production projects.

Texas-based Valero hasn't made a refinery acquisition since 2005. Pembroke has a refining capacity of 210,000 barrels per day, Bloomberg reported.

Valero, which will likely pay for the refinery in cash, has been looking to buy a European refinery for several years.