New details from a Marathon Petroleum Corp. subsidiary reveal two other companies were fighting for the rights to acquire MarkWest Energy Partners, a $2.01 billion oil and gas company with strong exposure in eastern Ohio.
MarkWest and Marathon spent all of 2014 discussing a joint venture and other partnerships, according to a Securities and Exchange Commission filing. At the time, all the talk centered on specific corporate development – there was no discussion of merging.
When the CEOs of both companies met in Denver to discuss the joint venture on Feb. 13, Marathon CEO Gary Heminger asked MarkWest boss Frank Semple about a broader transaction, according to the proxy filing from Marathon subsidiary MPLX LP.
Semple said then the company preferred to be a standalone company.
But this is the oil and gas industry, and circumstances can change in an instant. Last month, MarkWest said it would merge with Findlay-based Marathon (NYSE:MPC) in a $15.8 billion deal with big implications for Ohio oil and gas activity.Read the rest of how the deal unfolded by clicking here.
There is no indication of what other companies were circling MarkWest. As Knox indicates, this deal stands to have quite an effect on oil and gas activity in Ohio. It will be interesting to see exactly what the implications are.
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