Marathon Petroleum to Sell Speedway to 7-Eleven for $21B


   
    

   OAKHURST, N.J. (DTN) --- Marathon Petroleum Corp. on Sunday (8/2) announced 
that it and certain of its subsidiaries have agreed to sell Speedway to 
7-Eleven, Inc., a wholly owned, indirect subsidiary of Seven & i Holdings Co., 
Ltd., for $21 billion in cash. The transaction is expected to close in the 
first quarter 2020, subject to customary closing conditions and regulatory 
approvals.

   The arrangement includes a 15-year fuel supply agreement for approximately 
7.7 billion gallons per year associated with the Speedway business. The company 
expects incremental opportunities over time to supply 7-Eleven's remaining 
business as existing arrangements mature and as 7-Eleven adds new locations in 
connection with its announced U.S. and Canada growth strategy.

   "This transaction marks a milestone on the strategic priorities we outlined 
earlier this year," said Michael J. Hennigan, president and CEO. "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."

   This transaction is expected to result in after-tax cash proceeds of 
approximately $16.5 billion. MPC expects to use the proceeds to both repay debt 
to protect its investment grade credit profile and return capital to 
shareholders. Specific details will be announced at the time of transaction 
close.




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