In 2017, it looked like Marathon Petroleum Corp. was on its way out of the convenience-store business. After a strategic review, not only did Marathon keep its Speedway c-store chain, but the refiner-marketer also expanded its retail footprint.
Its $23.3 billion acquisition of refiner-marketer Andeavor, announced in April 2018, created the nation’s largest refiner by capacity and nearly doubled the size of Marathon's c-store portfolio. The deal spans the continent, adding Andeavor’s presence in the Western United States to Marathon's presence east of the Mississippi.
Findlay, Ohio-based Marathon sells Marathon-brand gasoline through about 5,600 independently owned retail outlets in 20 states and the District of Columbia. Enon, Ohio-based Speedway owns and operates about 2,740 c-stores in 21 states. Speedway ranks No. 3 in CSP's 2018 Top 202 list of U.S. c-store chains by number of company-owned retail locations.
Before the transaction, San Antonio-based Andeavor ranked at No. 7 on the list. Its retail marketing system included more than 3,200 outlets with fuel brands such as Arco, SuperAmerica, Shell, Exxon, Mobil, Tesoro, USA Gasoline and Giant. About 1,100 of those were company-owned locations. The combined company will have about 4,000 company-owned and -operated locations and about 7,800 branded retail locations.
The companies said they expect to close the transaction in the second half of this year.