Marathon Petroleum will acquire all of Andeavor’s outstanding shares as part of a merger agreement to create a leading US refining, marketing and midstream company.
The transaction will mean that Marathon and Andeavor shareholders will own 66% and 34% of the combined company, respectively.
Once the transaction is complete in the second half of 2018 it will create a leading nationwide integrated energy company with an initial enterprise value greater than $90 billion.
It will substantially increase its geographic diversification and scale positioning the company for long-term growth and value creation.
Gary R. Heminger, Marathon chairman and CEO, says: ‘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.
‘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. ‘
The move will build on Marathon’s strong footprint in the Marcellus, the combined company’s expanded presence in the Permian and Bakken regions significantly increases its midstream growth opportunities.