Next week, Murphy Oil (NYSE:MUR) will seek regulatory clearance for plans to separate its U.S. retail gas station business.
The company will submit the final proposal for the spin off to the Securities and Exchange Commission. In addition to SEC approval, Murphy wants the Internal Revenue Service to declare the move a tax-free transaction. The spin off could be completed during the second half of this year, if both agencies give their asset, Convenience Store News notes.
The company’s retail operations — to be named Murphy Oil USA — comprise 1,172 gas stations and convenience stores spread across 23 states. The number of stores is expected to rise to 1,253 stores before the end of this year. R. Andrew Clyde will serve as president of the new company.
A company official said that the spin off was “going according to plan,” and credited Clyde’s leadership of the retail unit.
Murphy Oil announced plans for the spin-off and the sale of certain assets in the United Kingdom in October.
Shares of Murphy Oil gained almost 2% in Friday morning trading.