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Ultramar in talks for rival
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February 25, 1997: 8:42 a.m. ET
Acquisition of Total Petroleum valued at $400 million, plus debt assumption
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NEW YORK (CNNfn) - Oil refiner Ultramar Diamond Shamrock Corp. is reportedly in talks to acquire rival Total Petroleum (North America) Ltd. in a purchase valued at more than $400 million.
The transaction would include the assumption of about $430 million in debt, according to Tuesday's Wall Street Journal.
While the two companies have talked about strategic alliances, "there is currently no offer on the table from Diamond Shamrock," Total Petroleum treasurer Douglas Kerner told The Journal.
An Ultramar Diamond Shamrock spokeswoman told the newspaper that the company doesn't comment on market rumors.
If completed, the acquisition would be the latest in a series of consolidations in the refining business, which has faced competition and waning margins in the mature markets of the United States and Europe.
The potential deal also would help Ultramar Diamond Shamrock further cut costs where it competes head to head with Total Petroleum, such as in Colorado.
Shares of Total Petroleum closed up 1/8 at 10 1/4 in Monday trading. Ultramar Diamond Shamrock stock added 5/8 to close at 29-5/8. 
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