REUTERS: Marathon Petroleum has agreed to sell its Speedway gas stations in the United States to Japanese retail group Seven & i Holdings for US$21 billion, the companies said, five months after the deal was put on hold amid the coronavirus outbreak.
Marathon, under pressure from activist investor Elliott Management, said last year it would launch sweeping restructuring, including spinning off Speedway, which it said was worth as much as US$18 billion, including debt.
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.
For Seven & i, owner of the 7-Eleven convenience store chain, the deal helps it shift its focus beyond a saturated Japan market, multiplying its portfolio of U.S. gas stations and corner stores acquired through a US$3.3 billion deal with Sunoco in 2017.
7-Eleven said the latest deal will bring its store count in the United States and Canada to about 14,000.
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 U.S. refiner by volume.
The Japanese company abandoned the deal in March, according to sources at the time, due to worries about the price tag - reportedly around US$22 billion - especially due to growing concerns about global economic slowdown amid the virus outbreak.
Many analysts and investors had said the initially reported deal price was too high. But some also said it still made sense for Seven & i to expand further in North America.
In Japan, the convenience store chain faces a slow economy as well as tough competition from rivals such as FamilyMart and Lawson , as well as discount drugstores and online retail giants like Amazon.com .
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 also produce compound annual growth over 15per cent in 7–Eleven's operating income through the first three years after closing, the company said. It added the purchase price reflected US$3 billion in tax benefits.
Seven & i, Canadian convenience store operator Alimentation Couche-Tard and private equity firm TDR Capital had prepared rival bids late last month for Speedway, Reuters reported in July.
(Reporting by Ritsuko Ando in Tokyo and Kanishka Singh in Bengaluru; Editing by Dan Grebler and Christopher Cushing)
Ad blocker detected: Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website.
Marathon Petroleum to sell Speedway to 7-Eleven Convenience Stores Chain
-
- Site Admin
- Posts: 3216
- Joined: Sat Aug 29, 2020 5:40 am
- Location: Singapore
- Contact:
Return to “Marketing & Distribution”
Jump to
- OIL AND GAS
- OIL AND GAS INDUSTRY
- ↳ Financial Results
- ↳ Market News
- ↳ Energy Outlook
- ↳ Petroleum Economics and Energy Policy
- ↳ Health, Safety and Environment
- SHIPPING, PORTS & LOGISTICS
- ↳ Shipping
- ↳ Ports & Terminals
- OIL AND GAS UPSTREAM
- ↳ Seismic, G&G
- ↳ Exploration
- ↳ Drilling & Completion
- ↳ Field Development
- ↳ Subsea Construction & Engineering
- ↳ Decommissioning
- ↳ Field Enhanced Recovery
- ↳ Offshore Services
- OIL AND GAS MIDSTREAM
- ↳ Pipelines and Subsea Pipelines
- ↳ LNG Terminals
- ↳ Marketing & Trading
- OIL AND GAS DOWNSTREAM
- ↳ Petrochemicals and Refineries Plants
- ↳ Marketing & Distribution
- ↳ Marine Terminals
- ↳ LNG to Power
- OIL AND GAS PROJECTS & ASSETS
- ↳ North America
- ↳ Central America
- ↳ South America
- ↳ Barents Sea, Norwegian Sea and Russia
- ↳ North Sea
- ↳ West Africa
- ↳ East Africa
- ↳ North Africa, Mediterranean Sea, Black Sea and Caspian
- ↳ Middle East and the Persian/Arabian Gulf
- ↳ South Asia
- ↳ South East Asia
- ↳ Australia and New Zealand
- ↳ South China Sea
- ↳ East Asia
- OIL AND GAS TECHNOLOGY
- ↳ FPSO, FPU, FSO, FDPSO, FSRU, FLNG, Jack-Up, Drilling Rigs
- ↳ FPSO/FSO/FPU contracts
- ↳ Altera Infrastructure (Teekay Offshore)
- ↳ BW Offshore
- ↳ SBM Offshore
- ↳ MODEC
- ↳ Yinson
- ↳ Bumi Armada
- ↳ MISC Berhad
- ↳ Rubicon Offshore
- ↳ Samsung Heavy Industries
- ↳ Hanwha Ocean (fka. DSME)
- ↳ Sembcorp Marine
- ↳ Keppel Offshore & Marine
- ↳ Saipem
- ↳ Bluewater
- ↳ CIMC Raffles
- ↳ KSOE
- ↳ TechnipEnergies
- ↳ CNPC/CPOE
- ↳ MTC Group
- ↳ Drydocks World Dubai
- ↳ Omni Offshore
- ↳ Euronav
- ↳ STX Corporation
- ↳ Petrofac
- ↳ Maersk FPSO
- ↳ COSCO
- ↳ Estaleiros do Brasil Ltda
- ↳ EMAS Offshore
- ↳ COOEC
- ↳ Drilling Rigs Contracts
- ↳ Valaris
- ↳ Transocean
- ↳ Borr Drilling
- ↳ Diamond Offshore
- ↳ Maersk Drilling
- ↳ Seadrill
- ↳ COSL Drilling
- ↳ Noble Drilling
- ↳ ARO Drilling
- ↳ Stena Drilling
- ↳ Northern Drilling
- ↳ Awilco Drilling
- ↳ PV Drilling
- ↳ Odfjell Drilling
- ↳ Shelf Drilling
- ↳ Grupo R
- ↳ Japan Drilling Company
- ↳ Vantage Drilling
- ↳ Bluewhale Offshore
- ↳ Northern Offshore
- ↳ Dolphin Drilling
- ↳ Velesto Energy
- ↳ Türkiye Petrolleri Anonim Ortaklığı (TPAO)
- ↳ Jindall Drilling
- ↳ Northern Ocean
- ↳ Island Drilling
- ↳ Saipem
- ↳ CPOE
- ↳ GSP Offshore
- ↳ ADES
- ↳ Arabian Drilling
- ↳ ADNOC Drilling
- ↳ Ocyan SA
- ↳ OC Offshore
- ↳ Eldorado Drilling
- ↳ Support/Construction/Offshore Vessels
- ↳ DOF Subsea
- ↳ ALP
- ↳ Subsea 7
- ↳ MCDERMOTT
- ↳ POSH
- ↳ Prosafe
- ↳ Floatel
- ↳ Saipem
- ↳ Tidewater
- ↳ Boskalis
- ↳ Siem Offshore
- ↳ OOS International
- ↳ Maersk Supply Service
- ↳ Rig Designs
- ↳ FPSO Designs
- ↳ FLNG, FSRU, FCSU Designs
- ↳ MODEC
- ↳ Technip Energies
- ↳ JGC
- ↳ Sevan SSP
- ↳ GTT
- ↳ Samsung Heavy Industries
- ↳ Bumi Armada
- ↳ DSME
- ↳ Wison Offshore
- ↳ FLNG, FSRU contracts
- ↳ Golar LNG
- ↳ Höegh LNG
- ↳ Excelerate Energy
- ↳ BOTAŞ Petroleum Pipeline Corporation (BOTAS)
- ↳ Samsung Heavy Industries
- ↳ Saipem
- ↳ Sembcorp Marine
- ↳ BW LNG
- ↳ DSME
- ↳ Dynagas
- ↳ MOL
- ↳ Wison Offshore
- ↳ Energos Infrastructure
- ↳ Subsea Engineering
- ↳ Turrets and Moorings
- ↳ SOFEC
- ↳ Bluewater
- ↳ SBM Offshore
- ↳ NOV APL
- ↳ DELMAR
- ↳ Remazel Engineering
- ↳ Seasystems
- ↳ London Marine Consultants
- ↳ Havfram
- ↳ Drilling, Work-over and Intervention
- ↳ Drilling, Work Over, Intervention, and P&A contracts
- ↳ Helix Energy Solutions
- ↳ Drilling Equipment and System contracts
- ↳ Zero Carbon
- ↳ Process / Packages
- ↳ Digital Technology
- ↳ Other Technology
- ↳ EPCI
- ↳ Asset Lifecycle
- ↳ Marine
- OIL AND GAS JOBS
- ↳ Job Agent: Submit your CV!
- ↳ Offshore Production (FPSO, FSO, FPU, Offshore Platforms)
- ↳ Drilling (Oil Rigs, Land Rigs)
- ↳ EPC Project Management (Fabrication Yards)
- ↳ Petrochemicals and Refineries
- ↳ Tankers & Shipping
- ↳ Onshore
- OIL AND GAS LIFE
- ↳ Jobs & Careers - For a better future
- ↳ Learning Hub - All Technical Stuffs
- ↳ Global Citizen - The World is your Oyster
- ↳ North Sea Stories
- ↳ Offshore Norge
- ↳ Middle East Stories
- ↳ Brazil Stories
- ↳ South-East Asia Stories
- ↳ Drilling Rigs
- ↳ FPSOs
Who is online
Users browsing this forum: No registered users and 2 guests