Marathon Moves Forward in Spinoff Move
HOUSTON -- The U.S. Securities and Exchange Commission (SEC) completed its review and declared effective the Registration Statements on Form 10 filed by Marathon Petroleum Corp. (MPC). The move is the final regulatory review in Marathon Oil Corp.'s bid to spin off MPC.
With the SEC declaration and a favorable letter from the Internal Revenue Service, which came last month, Marathon is set for a June 30 spinoff date.
In May, Marathon Oil's board of directors approved the spinoff of MPC, Marathon's downstream business, to create two independent energy companies, as CSNews Online previously reported.
The refiner will continue to operate under the name Marathon Petroleum Corp. and be based out of Findlay, Ohio. However, it will be completely independent from Marathon Oil, which won't own any shares in it. It will trade on the New York Stock Exchange under ticker symbol, MPC.
Existing Marathon shareholders will receive one share of Marathon Petroleum for every two Marathon Oil shares they own as of June 27. The new shares will be distributed on June 30.
Marathon Petroleum is expected to have nearly $41.43 billion in cash and become the fifth-largest refiner in the U.S. Meanwhile, Marathon Oil's headquarters will remain in Houston.