After Merger, Refiner Delek to Lay Off Staff in Texas
Tennessee-based refiner Delek US Holdings, Inc. plans to lay off 92 workers after closing of the company’s merger with Alon USA Energy, Inc., according to a letter to the Texas Workforce Commission dated May 15.
Under the $868 million merger agreement, Delek will buy all of Alon’s shares that the company does not already own. As a result of the transaction, which is expected to be completed between July and October, the Dallas office of Alon will lay off 92 employees, the letter states.
Alon’s employees are not represented by a union and do not have bumping rights. They may be offered a severance package.
The merger between Delek and Alon will give the company a larger presence in the Permian.
“We are excited to reach this agreement and believe this strategic combination will result in a larger, more diverse company that is well positioned to take advantage of opportunities in the market … we expect to be able to achieve meaningful synergies across the organization and the combination will create a refining system that will be one of the largest buyers of crude from the Permian Basin among the independent refiners,” Uzi Yemin, Delek U.S. CEO, said in a Jan. 3 press statement.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Senior Editor | Rigzone