Marathon to purchase Andeavor in $23bn deal
Marathon Petroleum will acquire US independent refiner Andeavor, creating the largest US independent refining, pipeline and retail company with assets in every US region.
The proposed $23bn transaction would expand Marathon Petroleum beyond its midcontinent and US Gulf coast concentration into the west, where Andeavor has built a tightly integrated business down the US west coast and in the Rocky mountains. The purchase adds midstream infrastructure in the Permian basin and western US to a Marathon Petroleum portfolio that connects the US Gulf coast to the upper midcontinent.
"Each of our operating segments are strengthened through this transaction, as it geographically diversifies our portfolio into attractive markets, increases access to advantaged feedstocks, enhances our midstream footprint in the Permian basin and creates a nationwide retail and marketing portfolio that will substantially improve efficiencies and enhance our ability to serve customers," Marathon chief executive Gary Heminger said.
The combined company will operate more than 3mn b/d of refining capacity in the US west coast, Rockies, midcontinent and US Gulf coast refining markets. The companies operate retail networks from coast to coast.
Both companies anticipated the acquisition closing by the end of this year.
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Norwegian Cruise swings to 1Q profit
Norwegian Cruise swings to 1Q profit
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Derailment may interrupt SoCal renewable diesel
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Cenovus boosts oil sands output by 4pc in 1Q
Cenovus boosts oil sands output by 4pc in 1Q
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