American petroleum refining and marketing firm Marathon Petroleum (MPC) has signed an agreement to sell its gas stations to the owners of the 7-Eleven convenience store chain for a cash consideration of $21bn.
The deal is considered to be the largest this year in the US energy sector.
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After-tax proceeds from the sale, which has been approved by the boards of directors of both companies, are estimated to be $16.5bn.
7-Eleven said the latest deal will increase its store count in the US and Canada to around 14,000.
Expected to close in the first quarter of next year, the deal includes a 15-year fuel supply agreement for about 7.7 billion gallons per year associated with the business of Speedway.
Marathon Petroleum president and CEO Michael J Hennigan said: “This transaction marks a milestone on the strategic priorities we outlined earlier this year.
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By GlobalData“Our announcement crystalises the significant value of the Speedway business, creates certainty around value realisation, 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.”
7‑Eleven is the largest chain in the ‘convenience-retailing’ industry.
In October 2018, Marathon Petroleum completed the $23.3bn acquisition of all outstanding shares of integrated marketing, logistics and refining company Andeavor to create the largest independent US refiner by capacity.
