Valero Spins Off Corner Store
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.
The article Valero Spins Off Corner Store originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.