Purchase of California Oil Hub Dropped After State Sues

SAN FRANCISCO (AP) — The Valero Energy petroleum company says it is giving up plans to acquire the last independently owned petroleum terminal in the San Francisco Bay Area.

Valero said in a statement Monday that it is dropping its purchase of the Martinez petroleum terminal hub rather than wage a long court battle over it.

California Attorney General Xavier Becerra (HAH-vee-air beh-SEHR’-ah) had sued to block the transaction.

Becerra says Valero’s purchase of the Plains All American Pipeline facility would have put all three Northern California petroleum-shipping hubs in the hands of refineries.

He says that would have stifled competition and might have raised gas prices.

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