November 2, 2023 [Reuters]- Marathon Petroleum (MPC.N) is not planning to participate in the current auction process for shares in a parent of oil refiner Citgo Petroleum, executives said Tuesday.
A U.S. court kicked off an auction last week of shares in a Citgo (PDVSAC.UL) parent company whose only asset is the Venezuela-owed refiner. Proceeds from any sale are expected to pay creditors with claims against the South American country and its state-run oil firm, PDVSA, for unpaid debts and asset expropriations.
Marathon Petroleum, the largest U.S. independent refiner by processing volumes, was among companies that had weighed a Citgo bid when it was last offered for sale in 2014. Industry analysts considered it a potential bidder this time.
“Refining M&A is one of the more challenging ways to create value,” said David Heppner, the company’s senior vice president of strategy and business development in response to a question about its interest on an earnings call with analysts. “You shouldn’t anticipate us participating in the current auction process for the Citgo assets.”
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