Marathon’s Speedway convenience store unit is making the $2.87 billion purchase. The merger will add 1,256 Hess gas stations in 16 U.S. states to Speedway’s 1,480 locations across 9 U.S. states, Reuters notes.
MPC plans to finance the acquisition — which includes $2.37 billion in cash payments as well as $230 million in working capital and $274 million for capital leases — with cash on hand and new debt.
HES and MPC expect the acquisition to close during the third quarter of this year. HES will use some proceeds from the sale to finance additional share repurchases.
Shares of HES climbed almost 2% in Thursday morning trading, while MPC stock rose more than 1%.
HES stock closed at $ per share on Wednesday.
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