Marathon Petroleum and its MLP to buy MarkWest

摘要

Marathon Petroleum Corp. (NYSE: MPC) and its MLP, MPLX LP (NYSE: MPLX), have positioned themselves to increase raw earnings by nearly $1 billion through the purchase of MarkWest Energy Partners LP (NYSE: MWE), the companies said July 13. The merged MPLX and MarkWest will become the fourth-largest MLP based on market capitalization, with a value of about $21 billion. MPLX will acquire MarkWest in a unit-for-unit transaction paying a 32% premium, and Marathon will supply a one-time cash payment of $675 million. All told, Marathon and MPLX will pay about $15.7 billion for MarkWest.