Officials with Ohio-based Marathon Petroleum have agreed to sell the fuel maker’s Speedway gas stations to the parent company of 7-Eleven in a $21 billion deal announced Sunday, according to WHIO-TV.
The all-cash transaction between Marathon and Japanese retail group Seven & i Holdings Co. is expected to close in the first quarter of 2021, pending regulatory approvals, company officials said in a news release. The deal will also see Marathon providing at least 7.7 billion gallons of fuel to 7-Eleven for each of the next 15 years, WHIO-TV reported.
"This acquisition is the largest in our company's history and will allow us to continue to grow and diversify our presence in the U.S., particularly in the Midwest and East Coast," 7-Eleven President and CEO Joe DePinto said Sunday in a news release. "By adding these quality locations to our portfolio, 7‑Eleven will have the opportunity to bring convenience to more customers than ever before."
Company officials said that as of March 2020, 7-Eleven was operating more than 9,8000 stores globally. The deal announced Sunday will add about 3,900 Speedway convenience stores to the brand's portfolio. In a notice about the sale published Monday, company officials said the deal will establish 7-Eleven "as the clear industry leader in the North American convenience store market."
“Our announcement crystalizes the significant value of the Speedway business, creates certainty around value realization and delivers on our commitment to unlock the value of our assets,” Michael J. Hennigan, president and chief executive officer of the Findlay, Ohio based Marathon, said Sunday in a news release. “At the same time, the establishment of a long-term strategic relationship with 7-Eleven creates opportunities to improve our commercial performance.”
The sale announced Sunday will put 7-Eleven stores in 47 of the 50 most populated metro areas in the U.S., according to the convenience store chain.
The sale was announced less than a year after Marathon officials agreed to spin off the Speedway brand under pressure from activist investors, The Wall Street Journal reported. It comes five months after an initial deal between Marathon and Seven & i Holdings fell through under the pressure of the coronavirus pandemic, according to Reuters.