FINDLAY, Ohio -- Marathon Petroleum Corp. (MPC) has closed on the acquisition of all of the outstanding shares of Andeavor. The two refiners and marketers entered into a $23.3 billion merger agreement in April.
The deal geographically diversifies their combined refining portfolio. San Antonio-based Andeavor's refineries in California, the midcontinent and the Pacific Northwest complement Findlay, Ohio-based MPC's existing Gulf Coast and Midwest refining footprint. The combined company will be the No. 1 U.S. refiner by capacity and a top-five refiner globally, with a throughput capacity of more than 3 million barrels per day across 16 refineries.
The transaction creates a nationwide marketing portfolio, combining MPC's strength east of the Mississippi with Andeavor’s strong presence in the western United States. The nationwide retail and marketing business includes approximately 3,900 company-owned and -operated stores and 7,800 Marathon-branded locations. Enon, Ohio-based Speedway LLC, an MPC subsidiary, owns and operates approximately 4,000 c-stores across the United States.
- MPC's Speedway is No. 3 in CSP's 2018 Top 202 ranking of c-store chains by number of company-owned retail locations.
Combining the two businesses unlocks substantial efficiencies and creates a national retail and marketing platform, including a nationwide loyalty program that supports increased customer engagement and substantial revenue-enhancement and cost-saving opportunities, the companies said.
"This transformative transaction is a significant milestone in our company's more than 130-year history," said Chairman and CEO Gary Heminger. "MPC is now the leading refining, midstream and marketing company in the U.S. and is well-positioned for long-term growth and shareholder value creation. We are excited to begin unlocking the extraordinary potential across our new platform, including approximately $1 billion of tangible annual run-rate synergies we expect within the first three years."
Heminger continues as MPC's chairman and CEO. Gregory Goff, formerly president and CEO of Andeavor, is executive vice chairman. Donald Templin, previously president of MPC, is president of refining, marketing and supply. Anthony Kenney, president of Speedway, will have responsibility for all company-owned and -operated convenience stores.
Heminger said the leadership team will share more details about the company’s plans at the upcoming Investor Day in December.
As of Oct. 1, Andeavor ceased to be publicly traded and its common stock discontinued trading on the New York Stock Exchange.
MPC also owns the general partner and majority limited partner interest in two midstream companies, MPLX LP and Andeavor Logistics LP, which own and operate gathering, processing and fractionation assets, as well as crude oil and light-product transportation and logistics infrastructure.
Photograph courtesy of Marathon Petroleum