Marathon Petroleum Corp sold its Speedway gas station network to 7-Eleven Inc, a subsidiary of Japan's Seven & i Holdings Co, for US$21 billion ...
REUTERS: Marathon Petroleum Corp sold its Speedway gas station network to 7-Eleven Inc, a subsidiary of Japan's Seven & i Holdings Co, for US$21 billion in an all-cash deal, the companies said on Sunday .
After-tax proceeds from the sale, which has been approved by the boards of both companies, are estimated at US$16.5 billion, Marathon said, adding it will use the proceeds to pay existing debt.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 per year associated with the Speedway business, said Marathon, the largest US refiner by volume.
The agreement takes 7-Eleven's store count to about 14,000 locations in the United States and Canada. It will buy about 3,900 Speedway stores located in 35 states, it said in a separate statement. 7-Eleven also said it expects to achieve US$475 million to US$575 million of synergies through the third year after the deal's closing.
The deal will produce compound annual growth over 15 per cent in 7–Eleven's operating income through the first three years after closing, the company said. It added that the purchase price reflected US$3 billion in tax benefits.Canadian convenience store operator Alimentation Couche-Tard Inc, Seven & i Holdings and private equity firm TDR Capital had prepared rival bids late last month for Speedway, Reuters reported in July.
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