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
4 December 2025
Time is running out for Lukoil and Rosneft to divest international assets that will be mostly rendered useless to them when the US sanctions deadline arrives in mid-December
3 December 2025
Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future
2 December 2025
The interplay between OPEC+, China and the US will define oil markets throughout 2026
1 December 2025
The North African producer’s first bidding round in almost two decades is an important milestone but the recent extension suggests a degree of trepidation
