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Marathon Petroleum purchases Hess gas stations
The Hess name will be removed from gas station signs as the chain has now been sold to Marathon Petroleum’s Speedway for $2.87 billion. This is significant as Hess is considered the largest chain of combined convenience stores and gas stations along the east coast. This will expand Marathon’s retail operations from nine to 23 separate states.
The sale consists of a $2.37 billion cash payment, $230 million in working capital and $274 million in capital leases. The sale involves all of the retail locations for Hess. It also includes 40,000 barrels per day running through one particular pipeline.
Such transactions are particularly significant when you look at the changes in share prices. For example, each share of Hess stock rose by $1.65 during a morning of trading and Marathon stock went up by $1.00 during the same period after the deal was announced. These transactions can be lengthy, however, as the acquisition is not expected to close until late in the third quarter.
For every sale or acquisition of a company there are going to be a number of ramifications that will require close attention. These can include legal, financial, tax or regulatory concerns. All of these considerations are complex. While we would hope for that any sale or acquisition goes smoothly, any mistakes made during the process can be costly.
Business transaction attorneys can assist companies through every stage of a sale including protection of assets, providing advice when it comes to negotiations, and drafting of purchase agreements and other documents.
Source: Kentucky.com, "Hess stations to be renamed, but trucks roll on," May 22, 2014