Marathon Ashland Petroleum - parent company of Speedway SuperAmerica - and Pilot Corp. have announced their intent to combine their travel center and truckstop operations.
The deal between the two companies, which includes only a letter of intent at this time, was announced last week. Under the agreement's terms, MAP and Pilot each would have a 50 percent interest in the new company, which would comprise a nationwide chain of about 250 travel centers. Headquarters of the new company will be in Knoxville, Tenn. Pilot's current president, James A. Haslam III, will be president and CEO of the new company.
Tom Stanford, publisher of Truckstop/Travel Plaza magazine and a recognized industry authority, said it appears to be a smart move for both companies.
"It creates the largest chain of travel centers and the largest reseller of retail diesel fuel all in one move," he said. "Additionally, there will be increased fuel margins for the merged operations in many markets where Pilot and Speedway formerly competed. Pilot is aggressive in fuel sales but not predatory."
Stanford said Speedway can now concentrate on maintaining its great strength as a regional petroleum marketer, and Pilot bolsters its national network of fueling locations for the over-the-road trucking industry.
"What Pilot lacks in complete full service facilities, it is attempting to overcome with the most complete network," Stanford said, adding that the consolidation should improve the bottom line of both companies.
The companies anticipate closing the transaction this summer, pending completion of due diligence, regulatory review and the execution of definitive agreements.
The deal between the two companies, which includes only a letter of intent at this time, was announced last week. Under the agreement's terms, MAP and Pilot each would have a 50 percent interest in the new company, which would comprise a nationwide chain of about 250 travel centers. Headquarters of the new company will be in Knoxville, Tenn. Pilot's current president, James A. Haslam III, will be president and CEO of the new company.
Tom Stanford, publisher of Truckstop/Travel Plaza magazine and a recognized industry authority, said it appears to be a smart move for both companies.
"It creates the largest chain of travel centers and the largest reseller of retail diesel fuel all in one move," he said. "Additionally, there will be increased fuel margins for the merged operations in many markets where Pilot and Speedway formerly competed. Pilot is aggressive in fuel sales but not predatory."
Stanford said Speedway can now concentrate on maintaining its great strength as a regional petroleum marketer, and Pilot bolsters its national network of fueling locations for the over-the-road trucking industry.
"What Pilot lacks in complete full service facilities, it is attempting to overcome with the most complete network," Stanford said, adding that the consolidation should improve the bottom line of both companies.
The companies anticipate closing the transaction this summer, pending completion of due diligence, regulatory review and the execution of definitive agreements.
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