California blocks petroleum storage terminal sale

CRA consultants advised the State of California in its efforts to block the sale of two independent San Francisco Bay Area petroleum storage terminals to Valero Energy Corporation. John Hayes provided expert declarations and testimony in advance of a hearing on a motion to issue a preliminary injunction. The California Attorney General argued the vertical acquisition would harm consumers and potentially drive up gas prices. On August 23, 2017, Judge William Alsup of the US District Court for the Northern District of California denied the state’s motion for a preliminary injunction, but his order also signaled a willingness to block the deal, with several references to Hayes’s testimony that the merger was likely to harm competition. Valero and terminal owner Plains All American Pipeline L.P. abandoned the deal in September 2017. In addition to Dr. Hayes, CRA’s team included Matthew Johnson, Marissa Beck, Corey Correnti, Desi Byanova, Trevor Graney, Sydney Wong,  and Sarah Black, among others.