News and analysis on global M&A and corporate financing strategies

Finance / United States

Delta Flies In To Rescue Pennsylvanian Downstream

May 2012 | Corporate Financing Analysis

CFW View: Delta Air Lines' acquisition of the 185,000b/d Trainer refinery and talks initiated by Carlyle Group to acquire the 335,000b/d Philadelphia refinery spur hope that the ailing Pennsylvanian downstream could survive the downturn. However, given current market trends, pure-downstream players are unlikely to invest in the state and relief will only come from unconventional investors with specific interests in mind. For Delta, the acquisition is an innovative solution to spiking Jet Fuel prices and is an adequate alternative to the strategies adopted by its competitors. However, the technical and financial challenge is considerable and it will be many years

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