Marathon Petroleum bets big on refining growth
The strategic rationale behind the refiner's deal to takeover Andeavor appears solid, but is the timing right?
Marathon Petroleum has agreed to take over rival Andeavor for $23.3bn, in a blockbuster deal that will create America's largest refiner, with a network of pipelines, terminals and refineries spanning the country. The proposed acquisition—the largest refinery deal in US history—values Andeavor at $152.27 a share, a 24.4% premium on its share price just prior to the announcement. The purchase means Marathon will have access to 3.03m barrels a day of refining capacity, nearly twice that of ExxonMobil. It will replace Valero as the US's largest refiner. Geographically, the companies are a neat fit. Marathon's base is currently in the Midwest and Gulf Coast regions, while Andeavor has major faci
Also in this section
22 May 2025
With contract awards looming on the Kuwait-Saudi backed Dorra field, the long-stalled gas project appears finally to be gaining traction—despite Iranian objections
21 May 2025
From the upstream sector to the end-users, gas is no longer seen as a transition fuel or an afterthought, executives told attendees at the World Gas Conference
21 May 2025
Integrated refining and petrochemicals company highlights strategic flexibility amid trade war risks and long-term planning to futureproof business, says CEO Prabh Das
21 May 2025
OPEC and IEA split on oil demand outlook and even diverge on supply risks, with huge implications for market sentiment
