Refiner Delek US Holdings Inc said it is in talks to buy some or all of Alon Israel Oil Co Ltd, a deal that could give it a stake in refineries and convenience stores in the United States and Israel.
Alon Israel, one of Israel's largest fuel station and convenience store operators, has a stake of about 48 percent in refiner Alon USA Energy Inc and a controlling stake in retailer Alon Holdings Blue Square Israel Ltd.
Blue Square in turn controls Dor-Alon Energy in Israel (1988) Ltd, which operates gas stations and develops shopping centers.
Alon USA's shares were up 6 percent at $16.95 in late morning trading on Tuesday. Delek's shares rose marginally to a record of $40.14.
Delek has refineries in Tyler, Texas and El Dorado, Arkansas with a combined capacity of 140,000 barrels per day. Alon USA's refineries in Texas, California and Louisiana have an aggregate crude oil throughput capacity of about 217,000 barrels per day.
Alon USA also operates nearly 300 7-Eleven convenience stores in Central and West Texas and New Mexico.
Financial terms were not mentioned by either Alon USA of Delek in their regulatory filings disclosing the merger talks. (bit.ly/1CsXeGv) (1.usa.gov/1Dng1GJ)
As of Monday's close, Alon USA had a market capitalization of $1.11 billion and Delek was valued at $2.29 billion.
Alon USA said it disclosed the talks between Delek and Alon Israel following reports in Israeli media earlier this week.
Delek spokesman Keith Johnson said the company had no comment beyond its regulatory filing.
Alon USA and Alon Israel were not immediately available for comment.