#7-Eleven parent company acquires Speedway for $21 billion

Speedway gas station owner Marathon Petroleum has agreed to sell the chain to 7-Eleven’s parent company.

Seven & i Holdings, the Japanese retail group which owns the popular convenience store, will pay $21 billion for Speedway.

The acquisition will see 7-Eleven add nearly 4,000 stores, and bring its total number of stores in the US and Canada to 14,000.

Marathon last year said it would launch sweeping restructuring following pressure from activist investor Elliott management, including the spinoff of the chain of gas stations.

The deal allows Seven & i to shift its focus beyond a saturated Japan market and expand its portfolio of American gas stations and corner stores after it spent $3.3 billion to acquire Sunoco in 2017.

The deal, which is expected to close in the first quarter of 2021, includes a 15-year fuel supply agreement for about 7.7 billion gallons of gasoline per year associated with the Speedway business, Marathon said.

The deal will also produce compound annual growth over 15 percent in 7–Eleven’s operating income through the first three years after closing, the company said. It added the purchase price reflected $3 billion in tax benefits.

Marathon stock opened trading up nearly 5 percent Monday morning on news of the deal.

With Post wires.