Marathon Again Boosts Cash Consideration for MarkWest
17 Novembro 2015 - 12:28PM
Dow Jones News
Marathon Petroleum Corp. on Tuesday boosted its one-time cash
consideration for MarkWest Energy Partners LP again as it looks to
seal the deal.
The cash portion of the deal is $6.20 per unit for MarkWest
shareholders, up from the boosted $5.21 per unit offer made Nov.
10. The initial July 13 offer was about $3.37 per unit, but shares
of Marathon's pipeline operator MPLX, used as deal currency, have
fallen about 40% since the stock's close that day.
Under the revised terms of the merger agreement, which Marathon
said was its "best and final offer," MarkWest common unit holders
will receive about $1.28 billion in total cash consideration and
1.09 MPLX common units per MarkWest share, for a total
consideration of about $51.74 per MarkWest share, based on MPLX's
Nov. 16 closing price. The deal, which is expected to close in
December, is valued at about $10.65 billion.
The deal will marry Marathon's oil pipeline network with
MarkWest's business separating natural gas into fuels such as
propane and ethane. These partnerships, which typically own
infrastructure like pipelines that earn steady revenue from
long-term contracts, have fared better than traditional drilling
companies during the energy downturn but still have faced
headwinds.
Write to Anne Steele at Anne.Steele@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 17, 2015 08:45 ET (13:45 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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