Marathon Petroleum to Sell Speedway to 7-Eleven for $21B
8/03 7:00 AM
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. (c) Copyright 2020 DTN, LLC. All rights reserved.
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