Ultramar, Diamond Shamrock agree to merge.

Ultramar Corp., Long Beach, and Diamond Shamrock Inc., San Antonio, have agreed to "a merger of equals" that vaults the resulting company into the top rank of U.S. independent refiner/marketers.

The merger creates a combined concern with a significantly broader geographical reach in refining and marketing. The new company will have combined revenues of more than $8 billion and combined equity market value in excess of $2.3 billion.

The merger gives Diamond Shamrock access to Ultramar's established markets in California and eastern Canada, while Ultramar gains from its partner a strong presence in the U.S. Southwest.

Diamond Shamrock's shareholders will receive 1.02 shares of Ultramar common stock for each Diamond Shamrock share they …