Phillips 66 and Marathon Petroleum abandon $180 billion merger talks

Sources familiar with the matter confirmed that Phillips 66 and Marathon Petroleum entered merger talks earlier this year, aiming to form a $180 billion oil-and-gas conglomerate. The combined entity would have controlled roughly 25% of U.S. refining capacity, prompting expectations of intense antitrust review. Proponents argued the merger could sustain higher margins during low fuel price periods by securing better crude discounts and integrating extensive pipeline and storage networks.

However, complexities such as Phillips 66's joint chemicals venture with Chevron and Marathon's publicly traded subsidiary MPLX added layers of difficulty. The discussions have now fizzled out, with officials from both firms refusing to comment, and revival appears unlikely in the near future. The episode underscores the high-level M&A activity encouraged during the Trump administration, which has also seen approvals for large deals in media and technology sectors.