In what is one of the biggest global acquisitions to be announced this year, Marathon Petroleum Corp. has agreed to sell its chain of Speedway convenience stores and gas stations to 7-Eleven for $21 billion in cash. The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions and regulatory approvals. The deal includes about 3,900 convenience stores.
“This acquisition is the largest in our company’s history and will allow us to continue to grow and diversify our presence in the United States, particularly in the Midwest and East Coast,” said Joe DePinto, president and CEO of 7-Eleven.
7-Eleven’s parent, Japan’s Seven & i Holdings, has been seeking a global acquisition to expand beyond its home market, according to CNN. At the same time Marathon Petroleum announced it planned to spin off Speedway last October, following pressure from activist investor Elliott Management to split Marathon into three companies. One of those companies was to be a standalone Speedway.
The benefits of the deal include complementary geographic footprints between Speedway and 7-Eleven that have little overlap. 7-Eleven currently has over 9,800 stores in the United States and Canada, and with Speedway’s portfolio of approximately 3,900 stores, this acquisition will bring 7-Eleven’s total number of stores to approximately 14,000 in the United States and Canada. Following the transaction, 7-Eleven will have a presence in 47 of the top 50 most populated U.S. metro areas.