Speedway headquarters in Enon. Bill Lackey/Staff

Marathon closed $23B deal with Texas refining firm

Marathon is based in Findlay, Ohio and is the parent company of the Speedway convenience store chain headquartered in Enon. As of Monday morning, Andeavor ceased to be publicly traded and its common stock discontinued trading on the New York Stock Exchange, according to information from Marathon.

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“This transformative transaction is a significant milestone in our company’s more than 130-year history,” said MPC Chairman and Chief Executive Officer Gary R. Heminger in a news release. “MPC is now the leading refining, midstream, and marketing company in the U.S., and is well-positioned for long-term growth and shareholder value creation.”

The combined company will be the largest U.S. refiner by capacity and a top-five refiner globally if the deal is approved, according to information from Marathon.

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Marathon officials declined to provide further comment to the News-Sun Monday.

Company officials have provided few details about the potential impact on Speedway. But Anthony Kenney, Speedway’s president, told members of the Springfield Rotary Club earlier this year that the deal could add as many as 1,100 convenience store outlets to the chain’s portfolio. It’s also unclear whether the agreement would mean any additional jobs at Speedway’s corporate headquarters in Enon.

The deal was expected to face few regulatory hurdles and has been expected to move forward relatively easily since it was first announced earlier this year, said Craig Weiland, an executive director at U.S. Capital Advisors and an analyst who follows Marathon.

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The deal makes Marathon the largest refining, midstream, and marketing company in the U.S. Marathon’s operations were primarily based east of the Mississippi River, while Andeaver operated mostly in the Western half of the country. Adding Andeavor’s operations is expected to provide Marathon with cost savings and allow for more efficient operations, he said.

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“The companys’ asset footprints, you can almost look at them as being mirror images of each other,” Weiland said.

A presentation on Marathon’s website said the merger will provide the opportunity to expand Speedway’s retail position nationwide. The presentation also says it will allow the company to leverage Speedway’s purchasing, distribution, home and back office and point-of-sale platforms.

And it says there will be opportunities to expand Speedway’s Speedy Rewards loyalty program nationwide.

Speedway’s footprint along the East Coast has boomed over the past few years. The retail chain operated about 1,500 stores, mostly in the Midwest, just a few years ago. But in 2015, Speedway’s $2.8 billion acquisition of Hess nearly doubled the size of the chain, adding hundreds of locations along the East Coast and South.

Speedway also announced the acquisition of 78 additional stores held by Petr-All Petroleum Consulting Corporation earlier this year. Those stores were marketed under the Express Mart brand and are located in the Syracuse, Rochester and Buffalo markets in New York.

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