Valero Energy Corporation and Plains All American Pipeline have mutually agreed to call Valero’s controversial acquisition of two Plains-owned petroleum storage and distribution terminals in Martinez and Richmond, Valero announced in an investor relations statement Monday.

The move comes after California Attorney General Xavier Becerra’s efforts to block the transaction in court. The sale would have created an unfair marketplace led to higher gas prices at the pump for Californians, Becerra says.

“Plains and Valero have each decided that it is in their best interest to terminate the transaction rather than endure the continued uncertainty that a lengthy trial would create for the California-based employees and customers of the terminals, as well as the considerable expense associated with defending a taxpayer-funded lawsuit,” the statement by Valero reads.

Becerra called the announcement “welcome news for all Californians” that “should send a strong message to the public: the California Department of Justice is committed to protecting consumers and competition.”

“At the California Department of Justice, it’s our responsibility to combat threats to our state’s thriving and competitive marketplace,” Becerra said in a statement Monday afternoon. “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 hardworking Californians. … 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.”

Valero, based in San Antonio, Tex., and Plains, based in Houston, previously contended that Valero’s expanded capacity would help consumers. Valero owns a refinery in Benicia and describes itself as the world’s largest independent petroleum refiner; Plains operates pipelines and terminals and does not own any refineries.

This summer, Becerra filed an antitrust lawsuit in U.S. District Court over the proposed transaction, saying the Martinez terminal is Northern California’s last independently owned terminal not controlled by a refinery.

He feared that if the sale of the terminal and a smaller one in Richmond proceeded, all three critical Northern California petroleum terminals would be operated by refineries — allowing them to coordinate and control access to the terminals and the flow of petroleum from them.

As part of the suit, Becerra in July also sought a preliminary injunction to block the sale. But U.S. District Judge William Alsup in August denied the preliminary injunction, saying it was not necessary because “it will be easy to restore the status quo” and reverse the effects of sale if Valero and Plains complete it before the trial and if Becerra is successful.

A trial date had been set for January 2018.

Becerra said Monday that 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.”

Valero said that prior to Becerra’s lawsuit, the Federal Trade Commission had elected not to pursue any regulatory action with respect to the proposed transaction.

“Despite the fact that the court denied the Attorney General’s motion for a temporary restraining order and its motion for a preliminary injunction, Plains and Valero have each decided that it is in their best interest to terminate the transaction,” Valero stated.

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