Tesoro Corp. is set to acquire the existing Shell-branded wholesale supply contracts in North Dakota, South Dakota, Minnesota, Utah and most of Idaho.
The acquired contracts represent approximately 300 Shell-branded stations. Under the terms of the agreement, Tesoro may also grow the Shell brand through retail stations in these areas, which are anchored by the company’s refineries in Mandan, N.D. and Salt Lake City, Utah.
“Shell has one of the most recognized retail gasoline brands in the world and we are pleased to expand our usage of the brand,” said Everett Lewis, executive vice president and chief operating officer.
The transaction will become effective Jan. 1, 2011. Post closing, the number of Shell-branded stations within the Tesoro retail system is expected to be approximately 650.
Tesoro Corporation, a Fortune 150 company, is an independent refiner and marketer of petroleum products. Tesoro, through its subsidiaries, operates seven refineries in the western United States with a combined capacity of approximately 665,000 barrels per day. Tesoro’s retail-marketing system includes over 875 branded retail stations, of which over 380 are company operated under the Tesoro, Shell, Mirastar and USA Gasoline brands.