Valero Spins Off Corner Store
May 1st 2013 4:38PM
Updated May 1st 2013 5:00PM
At long last, oil refining powerhouse Valero Energy is getting out of the business of selling soda pop and Slim Jims.
On Wednesday, Valero announced that the spinoff of its gas station and convenience store business is complete. Although in the future, Valero will continue to supply the stations with gasoline and diesel, henceforth, the retail operation (CST Brands) will be independent from Valero proper.
CST brands begins trading on the New York Stock Exchange tomorrow under the ticker symbol "CST." As an independent company, it will consist of a chain of more than 1,000 retail stores, generating more than $13 billion in annual revenues, earning nearly $200 million annually, and carrying minimal debt ,
As for the parent company, Valero Energy is trading down 3.3% today in response to the spinoff, and nearing $39 a share.
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