Marathon Petroleum Corp. said on April 30 it would buy rival Andeavor for more than $23 billion to form a company that would leapfrog Valero Energy Corp as the largest U.S. refiner by capacity.
The cash-and-stock deal values Andeavor at about $152 per share, representing a premium of about 24% to Andeavor stock's close on April 27.
The combined company will have the ability to process about 3.1 million barrels per day and have a large network of retail stations, oil, natural gas and refined products pipelines.
The deal is expected to produce $1 billion of synergies, Marathon said.
Marathon Chief Executive Gary Heminger will run the combined company, with a senior role for Andeavor's chief executive, Gregory Goff.
San Antonio, Texas-based Andeavor, formerly known as Tesoro, operates 10 refineries in the western United States with a refining capacity of about 1.2 million barrels per day, and ownership in a logistics business, according to Andeavor website.
Valero, which has similar overall refining capacity of 3.1 million barrels per day, has refineries in Canada and Britain apart from the United States.
Recommended Reading
Asia, EU Buyers Warming Up to US Shale M&A Again—Jefferies
2024-10-29 - Foreign asset buyers are considering U.S. upstream M&A to lower their LNG supply costs and avoid windfall taxes on European operations, Jefferies Managing Director Bill Marko says.
Investment Firm Aethon Explores Options for $10B US Natgas Assets, Sources Say
2024-11-13 - U.S. energy-focused investment firm Aethon Energy Management is exploring options for its natural gas production and midstream assets that include a sale or an initial public offering at a valuation of about $10 billion, including debt, people familiar with the matter said on Nov. 12.
SLB to Sell Interests in Canada’s Palliser Block
2024-10-17 - SLB and Torxen Energy had purchased the Palliser crude oil and natural gas assets from Cenovus Energy Inc. for about $1.04 billion cash.
NW Natural Holdings to Acquire Gas Utility SiEnergy for $425MM
2024-11-19 - Northwest Natural Holdings said the transaction should further support its long-term earnings growth outlook of 4% to 6%.
Phillips 66 Sells Stake in Gulf Coast Express for $865MM
2024-12-16 - After the sale, the ownership of the line will be split between affiliates of ArcLight Capital Partners and subsidiaries of Kinder Morgan, which owns the operating interest in the pipeline.