FINDLAY, Ohio—Marathon Petroleum Corp. announced yesterday it has agreed to sell its Speedway gas stations to 7-Eleven parent Seven & I Holdings Co. in a $21 billion cash deal that will increase 7-Eleven’s footprint in the U.S. and Canada to about 14,000 stores.
Ohio-based Marathon and Tokyo-based Seven & Holdings had reportedly been close to a deal in March but talks fell apart. Last year, Marathon agreed to spin off Speedway under pressure from investors.
“This transaction marks a milestone on the strategic priorities we outlined earlier this year,” Michael J. Hennigan, Marathon president and chief executive officer, said in a news release. “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. At the same time, the establishment of a long-term strategic relationship with 7-Eleven creates opportunities to improve our commercial performance.”
Joe DePinto, president and chief executive officer of Irving, Texas-based 7-Eleven, said in a news release, “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. By adding these quality locations to our portfolio, 7-Eleven will have the opportunity to bring convenience to more customers than ever before.”
7-Eleven said following the deal, the c-store chain will have a foothold in 47 of the top 50 most populated metro areas in the U.S. The company said it expects to welcome about 40,000 Speedway employees to the 7-Eleven brand.
With a nod to advancing sustainability goals, 7-Eleven said the combined company will set “shared 2027 targets to reduce CO2 emissions, to utilize more ecofriendly packaging and sustainable food supplies and to drive reduction in plastic usage.”
Marathon said the deal is expected to bring in $16.5 billion in after-tax cash proceeds and includes a 15-year fuel supply agreement for roughly 7.7 billion gallons per year associated with the Speedway business. The petroleum company anticipates future supply opportunities with 7-Eleven as the chain adds new locations in the U.S. and Canada.
The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions and regulatory approvals.