Boston, MA 05/22/2014 (wallstreetpr) – Marathon Petroleum Corporation (NYSE:MPC) is all set to acquire Hess Corporation (NYSE:HES)’s retail business as well as transport operations, as disclosed by the latter through a press release. Further, Hess revealed that the acquisition would cost Marathon $2.6 billion. Hess Retail is among the biggest chain of company operated convenience stores and gas stations along the East Coast and spread across 1,342 locations.
Hess To Use Proceeds For Share Buyback
Hess said that it will utilize the proceeds from the sale of the business towards additional share repurchases and noted that the company has boosted its current share buyback authorization from $4 billion to $6.5 billion. The company mentioned that since the initiation of the share buyback program back in August 2013, the company has bought back nearly $2.8 billion in stock.
Commenting on the deal, Hess’s Chief Executive Officer, John B. Hess said that the sale of the retail business symbolizes the highpoint of the company’s strategic transition into an explorations and production company. Hess said that he especially wishes to express his deepest appreciation to the employees of its retail business who have contributed majorly through their remarkable work and outstanding dedication to position the Hess brand to its current status and serving its loyal customers.
Expansion Of Retail Presence
Hess anticipates the transaction to complete before the end of the current year, while the deal is subject to standard closing conditions. It is to be noted that Hess is a leader in the discovery and production of crude oil and natural gas and works as an independent entity.
Marathon Petroleum Corporation (NYSE:MPC)’s Chief Executive Gary Heminger said that the takeover of the retail and transport operations of Hess would enable their company to remarkable expand its retail presence from 9 to 23 states through the premier Hess locations extending to East Coast and Southeast.
