Valero Energy Corporation announced Monday that it would be nixing its planned acquisition of two petroleum and distribution terminals in Richmond and Martinez owned by Plains All American Pipeline.

The decision followed a July lawsuit in which California Attorney General Xavier Becerra alleged that the purchase could contribute to higher gas prices in the state as all major petroleum terminals in Northern California would be owned by refineries. He also contended that such an investment would hinder competition.

Becerra’s injunction was denied in August, but he vowed to fight on in a trial that would have taken place this coming January. Following the decision by Valero to terminate the proposal, Becerra expressed his pleasure in a statement.

“At the California Department of Justice, it’s our responsibility to combat threats to our state’s thriving and competitive marketplace,” the attorney general said. “That’s why we took on this proposed acquisition. Simply put, we strongly believed that Valero’s action could have suffocated open competition and led to higher gas prices for hard-working Californians. U.S. District Court Judge William Alsup’s early ruling mirrored our legal team’s position, stating that the transaction would allow Valero to control gasoline sales ‘to further its own economic interest,’ and that its potential control over gasoline distribution for Northern California and Northern Nevada ‘raises serious concerns that this transaction will lead to higher prices at the pump.’”

“Going forward, let there be no doubt that the California Department of Justice will continue doing everything in its power to preserve a fair marketplace,” he added.

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