Marathon Petroleum buys Endeavor for $ 23 billion

Marathon Petroleum said yesterday it will buy its rival Endeavor for more than $ 23 billion to set up a company that surpasses Valero Energy Corp. as the world's largest energy refinery.
The deal, made up of cash and Endeavor shares, is estimated at $ 152 per share, a 24 per cent premium over Endeavor's share price at closing on Friday, according to Reuters.
The merged company will have the capacity to handle about 3.1 million barrels per day and a large network of retail terminals and pipelines for oil, natural gas and refined petroleum products.
Marathon predicted the deal would generate $ 1 billion in savings.
Gary Hemminger, Chief Executive Officer of Marathon, will manage the merged company, with Gregory Goff, Chief Executive Officer of Endeavor, playing a key role.
Endeavor, based in San Antonio, Texas, officially known as Tesoro, manages 10 refineries in the western United States with a refining capacity of 1.2 million barrels per day (bpd) and has a stake in a logistics company, according to its website.
Valero, which has a combined refining capacity of 3.1 million barrels per day (bpd), is in Canada and Britain, unlike the United States.

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