The deal was al was first reported in March 2005. Delek US Holdings, Inc., a wholly owned sub-subsidiary of Delek will carry out the deal. With this deal, Delek will become the second Israeli company operating a US refinery and oil pipeline. The other company is Alon Dor Group, controlled by David Weissman, Adv. Shraga Biran, and Africa-Israel Investments (TASE: AFIL). Delek US will acquire La Gloria Refinery, based in Tyler, Texas. The refinery has an approximate throughput capacity of 54,000 barrels per day. For the sake of comparison, this amounts to 2.5 million barrel a year, a fifth of Israel's refining capacity. Delek US is also acquiring the 104-kilometer McMurrey crude oil pipeline. Delek previously said that it intended to operate the refinery and pipeline in accordance with their original purpose. Delek US is financing the acquisition through $35.5 million in shareholders' equity and $42.5 million in credit from foreign banks. Total bank financing, including credit for buying oil, is about $300 million. Delek added that it would provide Delek US with a $35 million loan and $55 million in collateral and loan guarantees for the deal. Delek's announcement indicates that it will have to invest $70-90 million in the property over the next five years to improve its operations, including adapting the refinery and pipeline to US environmental standards. PIN/Globes Online