Marathon Petroleum has agreed to trade its Speedway gas stations in the United States to Japanese retail group Seven & i Holdings for $21 billion.
After-tax proceeds from the sale, which has been approved by the boards of both companies, are estimated at $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 $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 deal will also produce compound annual growth over 15% 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.
Seven & i, Canadian convenience store operator Alimentation Couche-Tard and private equity firm TDR Capital had prepared rival bids late last month for Speedway.