Home / Business / Marathon Petroleum buys Andeavor for more than $ 20 billion: WSJ

Marathon Petroleum buys Andeavor for more than $ 20 billion: WSJ

(Reuters) – Marathon Petroleum Corp plans 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 cap the largest US refineries ,

The potential cash position, which is expected to be announced on Monday, estimates Andeavor to be around $ 150 per share, the WSJ said, citing sources.

The offer would represent a premium of 22.6 percent on the Friday after-action of the Andevor share.

The company will be able to process around 3.1 million barrels per day and has a large network of gas stations, oil, natural gas and refinery products.

The agreement is expected to create $ 1 billion in synergies.

Marathon chief executive Gary Heminger is expected to lead the combined company, with a senior role for Andeavor boss, Gregory Goff, it said.

Andeavor, of San Antonio, Texas, formerly known as Tesoro, operates 1

0 refineries in the western United States with a refining capacity of approximately 1.2 million barrels a day and owns a logistics company, according to Andeavor's website.

Valero, which has a similar refining capacity of 3.1 million barrels per day, has refineries in Canada and the United Kingdom besides the United States.

Marathon and Andeavor were not immediately available for comment outside normal business hours.

Reporting by Shubham Kalia in Bengaluru, additional coverage by Gary McWilliams in Houston; Processing of Gopakumar Warrier

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