Marathon Petroleum buying Andeavor for more than $23B

SAN ANTONIO – With drivers beginning to take note of rising prices at the pump, Marathon Petroleum is buying the refiner and pipeline owner Andeavor for more than $23 billion, creating a refiner with an extensive reach across the U.S.

Marathon, based in Findlay, Ohio, has operations concentrated in the East while Andeavor, formerly known as Tesoro, has operations in the West.

Shareholders of Andeavor, based in San Antonio, can choose to receive 1.87 shares of Marathon stock, or $152.27 in cash.

Shareholders of Marathon Petroleum Corp. will own about 66 percent of the combined company, with Andeavor shareholders owning the rest. Headquarters will be in Findlay, Ohio, but the combined company will maintain a presence in San Antonio.

The deal is targeted to close in the second half of the year.