Refiner Delek US Holdings Inc said it would buy Alon Israel Oil Co Ltd's 48 percent holding in Alon USA Energy Inc for about $572.4 million, giving it a stake in convenience stores and more refineries in the United States.
Delek said it would buy 33.7 million Alon USA shares, valuing each share at $16.985, which is a premium of more than 8 percent to the stock's Tuesday close.
Alon USA's shares were up 5 percent at $16.50 in trading after the bell on Tuesday, while Delek's shares rose 3.2 percent to $39.10.
Delek said it would pay $200 million in cash, 6 million in stock and issue Alon Israel an unsecured $145 million promissory note maturing in January 2021.
The deal is expected to close in the second half of May.
For a year after that, Delek can acquire up to 49.99 percent of Alon USA at its discretion and boost its stake above that threshold only with the approval of Alon USA's board.
The company's restrictions on ownership of Alon USA stock ends a year after the deal closes, Delek said.
Delek said on March 31 that it was in talks to buy some or all of Alon Israel, one of Israel's largest fuel station and convenience store operators.
Delek has refineries in Tyler, Texas and El Dorado, Arkansas.
Alon USA has refineries in Texas, California and Louisiana and also operates nearly 300 7-Eleven convenience stores in Central and West Texas and New Mexico.
Bank of America Merrill Lynch and Barclays are Delek's financial advisers.