Marathon Petroleum to acquire Hess retail unit for $2.6B

|About: Marathon Petroleum Corp. (MPC)|By:, SA News Editor

Marathon Petroleum (MPC) agrees to acquire Hess' (HES) retail business, including all of Hess' retail locations and transport operations, for $2.6B.

MPC says the addition of Hess' stores to its Speedway network of sites will broaden its geographic footprint and position Speedway as the premier convenience store operator in the eastern U.S.; the combined business will have 2013 pro forma revenues of more than $27B, 6.2B gallons of annual fuel sales, and $4.8B of annual merchandise sales at more than 2,700 retail locations.

Hess says the sale continues its strategic transformation into a pure-play E&P company; proceeds from the sale will be used for additional share repurchases, and existing share repurchase authorization is increased to $6.5B from $4B.

HES +3.5% premarket.