CVR Energy to buy two Marathon refineries, marketing business for $4.2 billion (updated)

CVR Energy

Today 06:04

Changes sourcing, adds shares; changes media packaging code to MARATHON PTRLUM-M&A/CVR ENERGY from MARATHON-PETROLEUM-M&A/CVR-ENERGY
Nov 3 (Reuters) - US refiner CVR Energy CVI.N said on Tuesday it would buy two refineries and the marketing business from Marathon Petroleum MPC.N for about $4.2 billion, nearly doubling its refining capacity.
Marathon shares rose 2.2% in premarket trading, while CVR slid 1.3%.    
The deal includes Marathon's St. Paul Park refinery in Minnesota and Mandan refinery in North Dakota
The deal will add 177,000 barrels per day of refining capacity to CVR's existing portfolio
The transaction also includes a marketing business supplying up to 590 branded locations across the two regions
CVR has a market capitalization of about $6 billion, while Marathon's market value is around $125 billion, according to LSEG data. Shares of both the companies have more than doubled so far this year
The Wall Street Journal first reported the companies were nearing a deal earlier in the day
Last week, refiner Valero Energy VLO.N said its unit had agreed to acquire an oil refinery in Houston previously owned by a subsidiary of LyondellBasell LYB.N for $320.5 million

 (Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Subhranshu Sahu, Sonia Cheema and Shilpi Majumdar)
 ((Rajveersingh.pardesi@thomsonreuters.com))