Marathon Petroleum's Speedway closes on Hess deal
FINDLAY, Ohio (AP) — Marathon Petroleum's Speedway has completed its $2.82 billion purchase of Hess' retail operations and other assets.
Hess is the largest chain of company-operated gas stations and convenience stores on the East Coast. In May when the deal was announced, the companies said that Hess gas stations will all be rebranded as Speedway over three years.
The transaction also keeps the Hess toy truck on holiday wish lists — as they will still be sold at Hess retail stores and online this year. Starting in 2015, Hess plans to sell the toy trucks online.
The transaction was orchestrated under Speedway LLC and will expand Marathon Petroleum's retail operations from nine states to 23 states along the coast and in the Southeast. Aside from Hess' retail operations, the deal includes its transport operations and shipper history on various pipelines, including approximately 40,000 barrels per day on Colonial Pipeline that runs from New York to Houston.
Hess Corp., which is based in New York, has been reshaping itself as a pure production and exploration company since coming under pressure from hedge fund Elliott Capital Management in 2013. It said last year it would seek a buyer for its retail operations.
Marathon Petroleum Corp. is itself part of an earlier split in the energy sector in 2012, when Marathon Oil Corp. broke off its refining division so that it could focus on exploration and production.