Marathon Petroleum Corp to become top U.S. refiner with $23 billion Andeavor buy

Vastavam web: Marathon Petroleum Corp (MPC.N) agreed to buy rival Andeavor (ANDV.N) for more than $23 billion in the largest-ever tie-up between U.S. oil refiners, giving the combined company a nationwide presence and increased access to growing export markets.The United States has become the world’s top fuel exporter, shipping more than 3 million barrels per day (bpd) of gasoline and diesel. Refiners have capitalized on booming output from shale fields in Texas and North Dakota and are building out export terminals and processing facilities.

“The combination of the two companies allows us to go after and find ways to create a bigger presence in the Permian,” said Marathon chief executive Gary Heminger, who will lead the combined companies.The company would leapfrog Valero Energy Corp (VLO.N) to become the largest U.S. refiner, with the capacity to process 3.1 million bpd of crude oil into gasoline, diesel and other fuels. U.S. motorists consume more fuel than any other country in the world and overall demand nationwide hit a record 9.3 million bpd in 2017.The deal also gives Marathon a line into fast-growing Mexican fuel markets. Andeavor is expanding its network of filling stations in the country. Mexico’s dilapidated refineries cannot meet the growing population’s demand for gasoline and other products.

U.S. fuel exports to Mexico had risen to 1.4 million bpd as of January, up more than 85 percent from two years ago.