Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, June 26, 2020

Article Excerpt

MARATHON PETROLEUM CORP., $35.37, symbol MPC on New York, is a U.S. petroleum refining, marketing, and transportation company based in Findlay, Ohio. The company was spun off by Marathon Oil (symbol MRO on New York) in 2011. In November 2016, activist investor Elliott Management acquired a 4% stake in Marathon Petroleum and made several demands. They included the spinoff of its Speedway division. Marathon owns and operates roughly 4,000 convenience stores in the U.S., largely under the Speedway brand, making it one of the nation’s biggest such chains. It also has long-term fuel-supply contracts with other gas stations. In October 2019, after completing a 10-month strategic review, Marathon confirmed that it would finally spin off Speedway. The transaction was scheduled to be completed before the end of 2020. However, on June 19, 2020, news surfaced that Marathon is again in talks to sell Speedway instead of spinning it off. Canada’s Alimentation Couche-Tard (symbol ATD.B on Toronto) is one of several buyers reportedly interested in…

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