Carl Icahn’s CVR Energy reportedly nears $4B deal to acquire Marathon refineries

• CVR Energy (CVI), the oil refiner controlled by investor Carl Icahn, is near a more than $4B deal to buy refineries from Marathon Petroleum (MPC), according to a Wall Street Journal report.
• The deal is set to be announced Tuesday morning, assuming the talks don’t fall apart.
• CVR has a market value of close to $6B, with its stock up roughly 120% so far this year through Monday as it and peers benefit from wide refining margins for diesel, gasoline, and jet fuel. Marathon’s market value is around $125B. Icahn owns roughly 71% of CVR’s (CVI) shares and has been a major investor in the company over the years. His son, Brett Icahn, sits on its board.
• CVR is currently the seventh-biggest publicly traded refiner in the U.S., after giants including Marathon, Valero Energy (VLO), and Phillips 66 (PSX), about 20 times larger. CVR’s existing plants in Kansas and Oklahoma are banking lofty sales as the Russia-Ukraine war and conflicts in the Middle East have taken out a big chunk of the world’s fuel-making capacity.
• Last week, Valero (VLO) reported a $320M deal to acquire a shuttered Houston refinery formerly owned by LyondellBasell (LYB), with plans to resume operations at a capacity of 165,000 barrels per day by the end of 2027.

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