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Marathon Petroleum to acquire rival Andeavor
Marathon Petroleum will purchase rival Andeavor as part of a deal valued more than $23bn that would see the company jump right past Valero Energy to become the largest refiner in the US by capacity.
The cash-and-stock deal has valued Andeavor shares at roughly $152 each, a premium of around 24% to its close price on Friday.
The resulting business will be capable of processing approximately 3.1m barrels of oil per day across its large network of retail stations, oil, natural gas and refined products pipelines.
Marathon and Andeavor's deal will bring about an estimated $1bn of synergies, the former announced on Monday.
Marathon's chief executive Gary Heminger will take over the combined company, while a senior role will be created within the ranks for Andeavor's boss, Gregory Goff.
Andeavor, based in San Antonio, Texas and formerly known as Tesoro, operates 10 refineries across the western US with a combined refining capacity of 1.2m barrels per day, while competitor Valero has an overall refining capacity of around 3.1m barrels per day across its refineries in Canada and Britain