RTTNews | Aug 2, 2020 11:21PM EDT

23:20 Sunday, August 2, 2020 (RTTNews.com) - Marathon Petroleum Corp. (MPC) said Sunday that it agreed to sell its convenience store and gas station chain Speedway to 7-Eleven Inc., a subsidiary of Japan's Seven & i Holdings Co, for $21 billion in cash.

As part of the agreement, 7-Eleven will acquire about 3,900 Speedway stores located in 35 states.

7-Eleven currently has over 9,800 stores in the United States and Canada and with Speedway's high-quality portfolio of about 3,900 stores, the acquisition will bring 7-Eleven's total number of stores to about 14,000 in the U.S. and Canada.

7-Eleven expects to achieve $475 million to $575 million of run-rate synergies through the third year following closing.

The transaction is expected to close in the first quarter of 2021. The deal is expected to result in after-tax cash proceeds of about $16.5 billion, Marathon said.

Marathon expects to use the proceeds to both repay debt to protect its investment grade credit profile and return capital to shareholders.

Marathon said the arrangement includes a 15-year fuel supply agreement for about 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.

Read the original article on RTTNews ( https://www.rttnews.com/3117117/marathon-petroleum-to-sell-speedway-to-7-eleven-for-21-bln-in-cash.aspx)

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