Marathon to buy Andeavor in $23.3-bln deal

Through the deal, Marathon will surpass Valero Energy to become the USA’s largest oil refiner, with a capacity accounting for about 16% of the country’s total. Additionally, the company’s new 3-million-bpd refining capacity will position it as one of the top five refiners worldwide.

“This transaction combines two strong, complementary companies to create a leading US refining, marketing and midstream company, building a platform that is well-positioned for long-term growth and shareholder value creation,” said Marathon chairman and CEO Gary R. Heminger.

Marathon, which is focused on the Gulf Coast and midwest, will see its operations expand to the USA’s west coast through the merger.

“Each of our operating segments are strengthened through this transaction, as it geographically diversifies our refining 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,” Heminger said.

The merger is expected to be completed in H2 2018, following shareholder approval from both companies and regulatory approvals to ensure it meets antitrust requirements.