FINDLAY, Ohio — Marathon Petroleum confirms it has struck a deal to sell its Speedway chain of gas and convenience stores to 7-Eleven Inc. for $21 billion in cash.
Marathon management says the transaction has been approved by both companies, and is expected to close in the first quarter of 2021 subject to closing conditions and the approval of federal regulators. The New York Times reports that the deal will add 4,000 convenience stores to the 7-Eleven stable. It includes a 15-year fuel supply agreement that calls for Marathon to supply 7-Eleven with approximately 7.7 billion gallons per year associated with the Speedway business.
"This transaction marks a milestone on the strategic priorities we outlined earlier this year," said Michael J. Hennigan, president and chief executive officer. "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."
In Minnesota, Marathon began rebranding the familiar Super America chain of gas and convenience stores as Speedways in October of 2018 after the petroleum giant merged with SA parent company Andeavor. The change involved approximately 170 stores in Minnesota and Wisconsin. At this time there is no word if and when they will be rebranded again as 7-Eleven stores.
The Times reports that Marathon Petroleum, based in Ohio, has been struggling financially and has shuttered operations in two refineries.
