Marathon Petroleum is selling oil refineries in St. Paul Park and Mandan, N.D., along with Marathon’s related marketing business, in a deal valued at $4.2 billion.
Sugarland, Texas-based CVR Energy Inc., is the buyer.
“We are thrilled to deliver on our plan to strategically grow and diversify our business,” Dane Neumann, president and CEO of CVR Energy, said in a statement, adding that the company is acquiring “two well-maintained, highly productive refineries from Marathon.”
Neumann said Marathon has been an “excellent steward of these high-quality assets, and we look forward to welcoming the hardworking employees at these facilities into the CVR Energy family.”
Marathon plans to reinvest the capital primarily in the Gulf Coast and in the Permian and Marcellus basins, according to Maryann Mannen, Marathon’s chairman, president and CEO. The Permian Basin is located in the southwest part of the U.S., and the Marcellus Basin is located in the northeast part of the U.S.
“This divestiture of quality assets in Minnesota and North Dakota advances our strategic priorities of maximizing value creation and meeting our return thresholds,” she said.
The sale is expected to close at the end of the year, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, officials said.
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