Marathon Petroleum Corp. (NYSE: MPC) announced this morning that it has purchased the 451,000 barrel per day Texas City refinery from BP PLC (NYSE: BP) for $598 million. Included in the sale are inventories for which Marathon will pay an additional $1.2 billion. The deal also includes a $700 million earnout over six years, which Marathon also would have to pay, subject to certain conditions.
Marathon will fund the acquisition from cash on hand and expects the deal to close early next year. BP had identified the refinery as one of the assets it planned to sell as it beefed up its cash position.
In 2005, the Texas City refinery suffered an explosion that killed 15 workers and cost BP $21 million in fines for safety violations, another $63 million for failing to correct some of the original safety violations, and more than $2 billion in…
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