Andersons, Marathon Petroleum Combine Ethanol Interests
October 02 2019 - 9:45AM
Dow Jones News
By Colin Kellaher
Andersons Inc. (ANDE) and Marathon Petroleum Corp. (MPC) have
combined their ethanol interests in a new entity aimed at extending
and simplifying their long-standing partnership, Andersons said
Wednesday.
Andersons, a Maumee, Ohio, diversified agricultural company,
said it will own 50.1% of the new entity, Andersons Marathon
Holdings LLC.
Andersons said the combination involves its wholly owned ethanol
facility in Denison, Iowa, along with three plants that it jointly
owned with Marathon, a Findlay, Ohio, downstream energy company
that will own 49.9% of the new entity.
Andersons said it will consolidate the new entity's results in
its financial statements.
The company said the move will result in a step-up in the book
basis of the three jointly owned plants, along with a sizable
noncash gain in the fourth quarter.
The asset step-up also will result in higher depreciation
expense, Andersons said, noting that it is working to determine the
amounts of the gain and the additional depreciation.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
October 02, 2019 09:30 ET (13:30 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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