ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Tuesday, September 24, 1996            TAG: 9609240066
SECTION: BUSINESS                 PAGE: B-7  EDITION: METRO 
DATELINE: SAN ANTONIO

SOUTHWEST REFINERS SET MERGER

Oil refiners Diamond Shamrock Inc. and Ultramar Corp. said Monday they plan to merge in an all-stock deal that will enable them to compete better in the Southwest.

The merged company, Ultramar Diamond Shamrock Corp., will generate sales of more than $8 billion a year.

Diamond Shamrock, based in San Antonio, refines oil and sells gasoline in the Southwest through about 2,700 Corner Store, Stop N Go and Diamond Shamrock stores in nine states. It has the best-selling gasoline in Texas and is No. 2 in Colorado and New Mexico.

Ultramar, based in Greenwich, Conn., refines oil and sells gasoline in California. It also sells gas and heating oil in eastern Canada and New England. Its gasoline brands are Ultramar, Beacon and Sergaz.

``This merger will position the new company for greater penetration of attractive Western U.S. markets, including Arizona, California and Nevada,'' said Roger Hemminghaus, Diamond Shamrock's chairman and chief executive officer.

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