Marathon Petroleum agrees to buy Andeavor for more than $20 billion

NEW YORK: Marathon Petroleum Corp is set to buy Andeavor for more than $20 billion, the Wall Street Journal reported on Sunday, in a combination that would leapfrog Valero Energy Corp to create the largest US refiner by capacity. The potential cash-and-stock deal, which is expected to be announced on Monday, values Andeavor at about $150 per share, the Wall Street Journal reported, citing sources. The offer would represent a premium of 22.6 per cent to Andeavor stock’s Friday close. The company will have the ability to process about 3.1 million barrels per day and have a large network of retail stations, oil, natural gas and refined products pipelines. The deal is expected to produce $1 billion of synergies, the paper said. Marathon Chief Executive Gary Heminger is expected to run the combined company, with a senior role for Andeavor’s chief executive, Gregory Goff, it said. San Antonio, Texas-based Andeavor, formerly known as Tesoro, operates 10 refineries in the western United States with a refining capacity of about 1.2 million barrels per day, and ownership in a logistics business, according to Andeavor website. Valero, which has similar overall refining capacity of 3.1 mbpd, has refineries in Canada and Britain apart from the United States. — Reuters