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
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
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