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Marathon Petroleum has agreed to acquire rival Andeavor for $23.3 billion in cash and stock.

Why it matters: The deal would create the largest U.S. oil refiner by capacity, overtaking Valero Energy.

Marathon has six refineries with a combined 1.8 million barrels per day of capacity, while Andeavor — formerly known as Tesoro — has 10 refineries in western states with a combined 1.2 million barrels per day of capacity.

The context: Per WSJ, "Part of the rationale of the deal centers on the companies’ complementary footprints; with Marathon in the East and Andeavor in the West, regulatory approval could be easier to win."

Their sources say the merger would produce $1 billion worth of "synergies." Marathon CEO Gary Heminger would also lead the merged company, with his Andeavor counterpart Gregory Goff in a senior role, WSJ reports.

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Ford names James Farley as new CEO amid ongoing turnaround effort

James Hackett, left, is retiring as Ford CEO. Jim Farley, right, takes over Oct. 1. Photo: Ford

Ford announced Tuesday that James Farley will take over as its next CEO, replacing James Hackett, 65, who is retiring after three years in the job.

Why it matters: It leaves Farley to complete the company's ongoing turnaround effort. The transition will be that much harder as the industry tries to navigate the coronavirus-induced economic slowdown which shuttered Ford plants for two months on the eve of some of its most important vehicle launches.

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The interview was filmed on Tuesday, July 28 and aired Monday, Aug. 3 on HBO.

Mergers and acquisitions make a comeback

Illustration: Sarah Grillo/Axios

A slew of high-profile headlines led by Microsoft's expected acquisition of social media video app TikTok helped bring the Nasdaq to another record high on Monday.

Why it matters: The mergers-and-acquisitions market looks like it's bouncing back, joining the revived credit and equity markets as well as the market for new public companies through IPOs and special purpose acquisition companies (SPACs).