'When Valero Energy Corp. acquired Ultramar Diamond Shamrock Corp. {UDS} for US$61 bilhon, it created the secondlargest rener of petroleum products in North America, with over 23,000 employees in the United States and Canada, total assets of $10 billion, and combined revenues of $32 billion. Combined, it had 13 reneries with a total throughput capacity of just under 2 million barrels per day (BPD); it also became one of the continent's largest retailers, with more than 5,000 retail outlets in the United States and Canada. The Canadian operations of UDS continued to operate under the Ultramar brand. It was announced that the combination of Valero=s complex rening system and an extensive UDS rening, logistics, and retail network created synergies and strategic benets that would result in cost savings of approximately $200 million per year and the enhanced ability to compete effectively in a rapidly consolidating industry. The retail assets included in the acquisition were the brands Ultramar, Diamond Shamrock, Beacon, and Total. UDS had more than 2,500 companyouned sites in the United States and Canada, and also supplied 2,500 dealer, truck stop, and cardlock sites. The companyowned stones had extensive brand support programs such as proprietary consumer and eet credit cards, radio and television brand support, and strong instore marketing proyams, to which 1Valero was able to add its 350store retail network in California. In addition, UDS operated one of the largest home heating oil businesses in North America, selling heating oil to approximately 250,000 households- Page 201 The acquisition clearly included more than the physical assets of Ultramar Diamond Shamrock A variety of unrecorded intangible assets were represented in the portfolio of assets held by UDS, and these are the matters that require your attention at this time