7-Eleven Accelerates Growth with Speedway Acquisition

Short answer 7-11 buys speedway:

7-Eleven, Inc. announced its acquisition of Speedway gas stations from Marathon Petroleum Corp for $21 billion in August 2020. With over 9,800 locations in the U.S., this acquisition has made 7-Eleven the largest convenience store chain in North America.

The Inside Scoop: How Did 7-11 Buy Speedway?

When news broke that 7-Eleven had acquired Speedway – the second-largest chain of petrol stations and convenience stores in the US, everyone was left wondering how such a deal could be pulled off. After all, Speedway has over 3,900 locations across 36 states with annual revenues surpassing $22 billion. So how did 7-Eleven manage to pull off this colossal takeover? Let’s take a closer look.

The merger between both companies was not an overnight sensation but rather one that took almost two decades to become possible. It started back in 2004 when Marathon Petroleum Corp. bought four refineries from Texas-based oil giant BP plc., which also included its retail business- Speedy Rewards loyalty program and a network of around six hundred convenience stores under the brand name “Speedway”.

Marathon is primarily in the oil refining industry; hence running gas stations and convenience stores became more like ventures run by necessity instead of passion – thus opening avenues for potential sell-outs despite impressive financial performances within those sectors.

However, other players were interested too, including Alimentation Couche-Tard (Circle K), Casey’s General Stores Inc., as well as private-equity firms before rumours hit town that Japan’s Seven & i Holding Co., owner of global convenience store icon -7 Eleven- sought interest concerning this opportunity amidst dreams towards expanding in North America per se

Seven & i began making offers early last year shortly after rumors surfaced about MPC exploring options for investors who may want SCP (Speedway Convenience Properties). However, negotiations went cold until recently on March-third where an agreement between them concluded: acquiring three thousand eight hundred ten site operations together with participation from their wholesalers yielding control at seventy nine point seven percent controlling stock ownership coming to the tune of twenty-one-billion dollars cash transaction!

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Overall it can be seen there were multiple factors involved with regards to being successful throughout negotiations amongst notable scenarios ranging from management shifts over time leading towards rapid growth opportunities which widened new strategies available within changing market trends; ultimately it’s evident that insightful future planning and calculated risks led Seven & i Co. to make such a massive purchase.

In conclusion, the acquisition of Speedway by 7-Eleven is just another example of how long-term strategic planning and perseverance can help companies achieve their goals. Despite the hurdles faced along the way, both organizations remained committed to making the deal happen- fueling an exciting journey for what appears to be an even brighter future ahead in expanding avenues as they become America’s largest petrol station chain!

Step-by-Step Guide to the 7-11 and Speedway Acquisition

The recent acquisition of 7-11 and Speedway by the Japanese retail giant, Seven & i Holdings has been making headlines for quite some time now. With a deal worth more than $20 billion, this transaction is considered one of the biggest acquisitions in the retail industry.

If you are wondering what led to this humongous deal and how it came to fruition, then keep reading because we have got an interesting step-by-step guide here that will take you through everything you need to know about the 7-11 and Speedway acquisition!

Step 1: The Beginning

It all began when Marathon Petroleum Corp (MPC) made an announcement in October 2019 confirming their plans to explore strategic alternatives for its subsidiary company – Speedway LLC, which operates nearly 4,000 convenience stores across America. MPC had planned on selling off or spinning out the gas station chain as part of its plan to refocus on oil refining.

With so much speculation surrounding potential buyers of Speedway LLC, rumors started swirling around that Seven-Eleven Japan Co Ltd (a wholly-owned subsidiary of Seven & i Holdings) was among those interested parties keenly looking at acquiring the chain.

Step 2: A Competitive Bid

In March 2020, Bloomberg reported that after months of negotiations over a potential sale price; Couche-Tard Inc emerged as a strong contender in acquiring Speedway LLC with a bid reportedly ranging between $22-$23 billion. However, even before any finalization could occur there were various challenges involved considering chances were slim regarding regulatory approval due to anti-trust issues. That’s where things took an unexpected turn when news broke out stating that Seven-Eleven Japan also showed interest and soon presented their own bids alongside other competing offers from leading firms such as Alimentation Couche-Tard Inc., private equity firm TDR Capital LLP along with Blackstone Group Inc undertaking diligence phases involving financial review amongst others putting themselves within contention for the acquisition of Speedway.

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Step 3: Acquiring Speedway

After months of speculation and negotiations, it was finally revealed that Seven & i Holdings had been selected as the highest bidder to acquire Speedway LLC through their US subsidiary company – Seven-Eleven Japan Co Ltd with a deal worth over $20 billion. The acquisition gives Seven & i control of nearly 14,000 convenience stores across America in what is now considered one of the largest deals within these sectors ever recorded.

The announcement also comes as great news considering both know how crucial such strategic partnerships can be at times especially considering such tough economic climate things like this positively impacts employment opportunities ultimately making much-needed job opportunities accessible to more people across America during uncertain times like present given COVID-19 pandemic

In conclusion, acquiring Speedway by Seven & i is an excellent move on their part. This acquisition will undeniably give them substantial dominance amidst stiff competition from other industry giants with profound impact giving customers way better overall experience across more than just a single brand under existing class-cross category arrangement rewarding loyalty while providing greater menu options leading up

Your Burning Questions Answered: 7-11 Buys Speedway FAQ

Today, we are answering all your burning questions about the recent news that 7-11 has purchased Speedway gas stations. There have been a lot of rumors and speculation floating around, so we’ve compiled a helpful FAQ to guide you through this exciting change in the convenience store landscape.

Q: What exactly is happening?
A: In August 2020, 7-11 announced it had agreed to purchase Speedway from its parent company Marathon Petroleum Corp for $21 billion dollars. This means that soon you’ll be shopping at a completely different chain of convenience stores!

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Q: When will this happen?
A: The two companies anticipate the deal closing in early 2021, pending regulatory approval.

Q: How many stores will be affected by this acquisition?
A: Speedway operates over 4,000 locations across the United States and they’re all expected to become part of the 7-11 family if everything goes according to plan.

Q. So what changes should I expect as a consumer?
A. For now, there’s no word on whether any major changes or renovations will occur when these locations convert into 7-11s. However don’t worry—there’s still plenty of time before anything happens officially!

One thing you might notice after conversion takes place is that some products may come and go based on how well certain items sell within each specific location market; keep an eye out for new exclusive merchandise popping up too though!

As always with big acquisitions such as these–only time and patience can reveal just what other exciting surprises await customers post-acquisition.

It can also be safe bet there wouldn’t be sharp spike in prices–7-eleven has historically kept their price point lower than competitors while still offering quality goods/services amidst trade secrets/competitive pricing structures which suggest continued affordability even once Speedways outlets undergo conversion

Q: Will employees lose their jobs due to this transaction?

There might be a small number of overlap between stores in some markets—but no major workforce reductions or job losses are expected for those working at Speedway locations.

In fact, after the transaction is fully complete, it’s highly likely that they’ll be hiring extensively to meet their growing needs though exact numbers on staffing changes post-acquisition have not yet been formally released.

Q: What does this mean for the gas we purchase?
Given that 7-11 will now own all Speedway locations, there could potentially be slight fluctuations when it comes to pricing and fuel quality. That said—sometimes change can lead to new opportunities/innovation; effects may even end up being positive/productive adjustments rather than negative ones.

Changes related specifically to gas prices–the jury is still out as who knows what lies ahead! However good news in short term according Fox News report After acquisition deal became publicly known Marathon Petroleum Corp shares rose by nearly 3% quickly reversing earlier downward slide with most analysts bullish on both sides for near future prosperity.

Q: Is anything else changing aside from ownership?

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