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MPLX to acquire US midstream company Andeavor Logistics

May 10, 2019 / Hydrocarbons Technology

Marathon Petroleum Corporation (MPC) has announced a definitive agreement to merge two midstream units in a deal with an equity value of $9bn.The deal will see the acquisition of Andeavor Logistics (ANDX) by MPLX in a unit-for-unit transaction at a blended exchange ratio of 1.07x. The enterprise value for the acquired entity is $14bn.ANDX is a fee-based, full-service, diversified midstream logistics company sponsored by Marathon, which also formed a diversified, large-cap master limited partnership (MLP) known as MPLX.The merger will result in the creation of a large-scale, diversified midstream company, which will be driven by fee-based cash flows.The combined entity will have an expanded geographic footprint and enhanced long-term growth opportunities, Marathon noted.