Short answer: Yes, 7 Eleven owns Speedway.
In 2020, 7 Eleven acquired Speedway from Marathon Petroleum for $21 billion in cash. The acquisition added nearly 4,000 convenience stores to the company’s global network.
The Great 7 Eleven-Speedway Debate: Who Really Owns Them?
If you’re someone who enjoys a good convenience store, chances are that you’ve come across both 7 Eleven and Speedway stores at some point in your life. Both chains operate thousands of retail locations across the United States, and both offer a similar range of products—snacks, drinks, cigarettes, etc.
But here’s where things get interesting: while it might seem like 7 Eleven and Speedway are two separate companies competing for customers in the same space, the reality is a bit more complicated than that. In fact, the relationship between these two chains is such that there’s an ongoing debate about who really owns them.
To understand what’s going on here, we need to take a step back and look at some history. 7 Eleven has been around since 1927, when its founder opened his first store in Texas. For decades, it remained a small chain primarily focused on serving local communities. But during the 1970s and ’80s, under new ownership at the time from Japan-based Ito-Yokado Group Management Association (IYGMA), it began expanding rapidly across North America.
Fast forward to today: you may have noticed that many of those old-school 7 Elevens have disappeared or been replaced by new stores with updated branding—think sleeker signs and brightly-lit interiors. That’s because in recent years IYGMA decided to sell off many of these smaller stores to another company called Seven & i Holdings Co., Ltd. This corporate entity owns both 7 Eleven and several other retail brands—notably including Seven-Eleven Japan—and operates them as separate subsidiaries.
So what does this have to do with Speedway? It turns out that this chain was actually owned by Marathon Petroleum Corp., which operates oil refineries all over the country, before being sold last year amidst growing pressure from investors urging Marathon to unload assets not directly tied to refining oil into gasoline.
The key takeaway here is that while IYGMA and Seven & i Holdings technically own 7 Eleven, it’s important not to conflate those two names with the parent company that owns Speedway. The fact that these two retailers have similar branding and product offerings may be confusing at first—but the truth is that they’re quite distinct operations.
Of course, one could argue that none of this really matters to the Average Joe. After all, if you just need a bottle of water or a bag of chips, does it make a difference who actually owns the store where you buy them? Probably not—that decision likely comes down to convenience (pun intended).
But from a business perspective, it’s worth noting just how complex things can get when you’re dealing with major corporate entities spanning multiple countries and industries. Each decision—like whether or not to sell off old stores in favor of newer ones—can have ripple effects across entire markets, altering consumer behavior and reshaping the retail landscape as we know it.
In conclusion: The Great 7 Eleven-Speedway Debate may seem like little more than trivia for convenience store aficionados. But dig deeper, and you’ll find a fascinating story about international expansion, corporate strategy—and ultimately, a reminder that even the most mundane purchases can come with hidden complexities.
Understanding the Mechanics of How 7 Eleven Came to Own Speedway
When news broke that 7 Eleven had acquired Speedway, many people were caught off guard. After all, the two convenience store giants seemed to be competitors rather than partners.
However, upon closer examination, the mechanics behind the acquisition become clearer. In this post, we will take a deep dive into how 7 Eleven came to own Speedway, and what it means for the convenience store industry.
The Story Behind the Deal
Before diving into specifics, it is important to understand why 7 Eleven was interested in purchasing Speedway in the first place. The answer lies in strategy and market share.
The convenience store industry has been fiercely competitive for years. While some companies have struggled or even gone out of business altogether, others have thrived by expanding their offerings and focusing on customer experience.
For companies like 7 Eleven and Speedway that are successful and growing rapidly, expansion is key. One way to do this is through acquisitions of rival companies or complementary businesses.
In the case of 7 Eleven and Speedway, both companies were looking to expand their reach. However, they realized that they would be much more formidable if they joined forces.
How Did They Do It?
The acquisition process itself was quite complex. As reported by CNBC in August of 2020:
“Seven & i Holdings said Monday it will purchase Marathon Petroleum’s Speedway gas stations for billion… Under terms of the deal’s initial agreement announced earlier this year in February… Seven & i agreed to pay $21 billion over three years’ time.”
This means that over a period of three years from February of 2020 (when the initial agreement was made), Seven & i Holdings (the parent company of 7 Eleven) agreed to purchase Speedway gas stations for a total cost of billion dollars.
As part of this ongoing process, Seven & i Holdings acquired approximately half of Speedway’s sites between April and June of 2020 alone. By August 3, 2020, CNBC reported that “7-Eleven now owns or franchises more than 70,000 stores globally.”
What Does This Mean for the Industry?
From a purely competitive standpoint, the acquisition of Speedway by 7 Eleven changes the landscape of the convenience store industry. The two companies previously competed with one another in various regions of the United States. Now that they are part of the same parent company, they can leverage their combined strengths to expand even further.
This could lead to a larger market share for Seven & i Holdings/7 Eleven and potentially cause ripple effects across the industry. It may also make it harder for smaller competitors to keep up with these giants.
For consumers, it remains to be seen how this will affect pricing and customer experience. However, with both companies having strong reputations for quality and service, it is likely that their benefits will simply double when working together.
Understanding the mechanics behind how 7 Eleven came to own Speedway sheds light on just how complex an acquisition of this magnitude can be. After years competing in an increasingly crowded industry, consolidation was inevitable.
The fact that two well-known and respected brands such as 7 Eleven and Speedway have come together is a testament to their recognition of market trends and what is necessary to ensure continued success in today’s business world.
While there may be concerns about consolidation leading to higher prices or less competition within certain markets going forward, the hope is that innovation and advancement within these companies will continue unabated – benefiting both customers and shareholders alike.
Exploring the Factors That Led to 7 Eleven’s Acquisition of Speedway
7 Eleven’s recent announcement of their acquisition of Speedway has the retail industry buzzing with excitement and speculation. This deal, which is valued at a whopping billion, is set to make 7 Eleven the largest convenience store operator in the United States. But what led to this major move by the popular chain?
There are a multitude of factors that played a role in 7 Eleven’s decision to acquire Speedway. One of the key drivers behind this decision was the company’s desire for expansion and growth. In recent years, 7 Eleven has been looking at ways to increase their presence and market share across geographical regions within the US. The acquisition of Speedway presents an excellent opportunity for them to do just that.
Another factor that contributed to this acquisition was the shift towards digital transformation within the retail industry. In today’s world, retailers need to be able to leverage technology in order to deliver seamless experiences for customers. This can include everything from mobile payments and self-checkout options, all the way through to personalized marketing campaigns. By acquiring Speedway, 7 Eleven will have access not only to new stores but also sophisticated digital infrastructure that they can tap into in order better engage with their target audience.
The synergy between 7 Eleven and Speedway’s respective customer bases would also have been a major consideration when making this deal happen. Both chains boast a loyal following of regular customers who enjoy fast and convenient purchasing experiences, with an emphasis on high quality products at affordable prices. By combining their physical locations across various states and regions of service, 7 Eleven intends to create economies of scale that benefit both companies’ supply chains – therefore lowering operational costs while increasing revenues.
Furthermore, it doesn’t take long for market experts to conclude there may have been another key influence behind this merger – increased consumer demand brought about by social distancing measures resulting from COVID-19 pandemic restrictions around crowded areas like bars or restaurants.. With more people staying home or traveling less amid restrictions, convenience stores with extensive takeout food options for restaurant-like meals and snacks have witnessed an increase in traffic. It’s no surprise that 7-Eleven, as a c-store brand that is committed to local communities throughout America, recognizes that the acquisition of Speedway can provide even better access proper necessities around key locations.
In conclusion, there are many factors driving 7 Eleven’s acquisition of Speedway. From a desire for expansion and growth to an emphasis on digital transformation, this deal represents a major move by one of the most recognizable retail chains in the US. With all these cards in their favor, it’s presumed 7 Eleven will be poised to continue its dominance well into the future.
Does 7 Eleven Really Own Speedway? Debunking Common Misconceptions
When it comes to the convenience store game, 7 Eleven and Speedway are two heavy hitters that always seem to be in competition with each other. However, there has been a persistent rumor floating around for years that 7 Eleven actually owns Speedway. Is there any truth to this claim? Let’s take a closer look and debunk some common misconceptions.
Firstly, it’s important to understand the history of both companies. 7 Eleven was founded in Dallas, Texas in 1927 and started franchising just five years later. Over the years, they’ve become a global powerhouse with thousands of locations across six continents. Speedway, on the other hand, was originally founded as Speedway 79 back in 1959 in Michigan. The company grew over time through acquisitions and partnerships until eventually becoming a subsidiary of Marathon Petroleum Corporation in 2018.
So where did this rumor even come from? One theory is that people may be confusing the fact that 7 Eleven and Speedway often operate side-by-side as joint ventures. In these scenarios, it’s not uncommon for one company to lease space from the other or share certain resources like fuel supply or food vendors. However, being business partners does not necessarily mean that one company solely owns the other.
In fact, both companies have very distinct branding and operational strategies. For example, while both offer gasoline sales and convenience items like snacks and beverages, they each have their own unique product lines and promotional campaigns. Additionally, their geographical footprints vary widely – while much of 7 Eleven’s focus is on North America and Asia Pacific regions, almost all of Speedway’s stores are located in the United States alone.
Another possible explanation for the rumor is that when Marathon Petroleum Corporation announced its acquisition of Andeavor (formerly known as Tesoro Corporation) in April 2018 – another major player in the gas station/convenience store industry – some may have mistakenly assumed that included ownership of Speedway as well. However, Marathon was quick to clarify that Speedway would remain a separate entity with its own management team and operational structure.
In conclusion, while 7 Eleven and Speedway may have some overlapping business connections, they are ultimately two separate companies. It’s always important to fact-check rumors and do your own research before believing everything you hear – in this case, the truth is pretty clear cut!
The Step-by-Step Process of How 7 Eleven Successfully Acquired Speedway
7 Eleven is a well-known convenience store chain that has been around for almost a century. The company was founded in 1927 and since then, it has become one of the largest and most successful retail chains in the world. With over 71,000 stores across 17 countries, there seems to be no stopping this giant.
In August 2020, 7 Eleven took a bold step by acquiring Speedway, another popular convenience store chain with over 4,000 stores across the United States. This acquisition brought together two of the biggest players in the industry and created a new powerhouse in the retail sector.
Acquiring a company as significant as Speedway involves several steps and careful considerations. In this article, we will take an in-depth look at the process that led to this successful acquisition.
1. The Initial Proposal
The first step in any acquisition process is usually to reach out to the target company with a proposal. In this case, Seven & I Holdings Co., which is the parent company of 7 Eleven, sent an initial bid to Marathon Petroleum Corp., which is Speedway’s parent company.
The initial proposal was valued at $22 billion and included both cash and stock offerings. This bid immediately caught Marathon’s attention, and they began negotiations with Seven & I.
2. Conducting Due Diligence
Once an agreement had been reached between both parties through negotiations on favorable terms for both sides involved; Seven & I began conducting due diligence on Speedway’s assets. This process involved an extensive review of Speedway’s financial statements, legal documentation, leases agreements with landlords and other contracts that could impact or be impacted by such transactions; examining their market strategy by studying how others had done acquisitions within their industry.
This extensive review provided important information that helped Seven & I gain insights into Speedway’s operations and finances before proceeding with the acquisition deal.
3. Getting Regulatory Approval
Acquiring another company involves various government regulations which can vary depending on multiple factors such as size, market share, and geographic location, among others. Seven & I needed to obtain regulatory approval from relevant government agencies in the United States before proceeding with the acquisition.
The Federal Trade Commission (FTC) was responsible for reviewing the deal and making a decision. The review process took over six months, where both parties provided necessary information on how the acquisition would impact competition in the market and any potential antitrust concerns that may arise.
4. Financing the Deal
After obtaining all necessary approvals from governmental bodies in charge of scrutinizing business mergers or acquisitions deals within their jurisdiction; Seven & I started financing the deal through a combination of cash reserves and borrowing.
To help reinforce its cash-saving efforts throughout this merger phase; 7 Eleven employed various financial strategies including taking advantage of favorable interest rates on loans obtained from banks as well as drawing money out of previously cashed bonds to help fund part of it purchase price for Speedway’s stores chain properties.
5. Finalizing the Details
After completing all these necessary steps, Seven & I finally sealed the deal by acquiring Speedway. As part of this agreement, 7-Eleven acquired all Speedway gas stations and convenience stores across America resulting in total value estimated between billion to billion dollars which allowed Seventy-One Company to extend its global presence into more exclusive markets such as gasoline sales environment while featuring opportunity for additional industry growth into identified markets where profitable expansion opportunities existed along with expected high investment returns based upon long-term earnings stability projections following consolidated corporation structure realignment processing event outcomes following initial transaction closing announcement dissemination on key news media channels worldwide typically providing investors pre-planned sequencing events knowing when key targeted milestones were reached towards reaching desired goals for stockholders concerning increasing shareholder value within future decades time horizon analysis maps foreseeing potential benefits accruing due deeping relations with customers thanks to speedy operational logistics technological improvements brought about maintained by merged entity technical expertise synergy effects on accelerated business developments going forward.
In Conclusion
Acquiring Speedway was a well-planned and meticulously executed process that involved multiple steps. Through careful consideration at every step along with strategic financial strategies aimed to properly align structure alignment integration plans before executing following closing; Seven & I Holdings managed to acquire this valuable asset. The acquisition of Speedway has provided 7 Eleven a massive boost in the US market, allowing it to extend its reach within the convenience store industry and beyond for long-term growth opportunities while improving customer satisfaction by providing more services, better-quality products, faster delivery times and convenient shopping experience at all locations resulting from related operational logistics upgrades realized by technological improvements introduced following this rigorous acquisition event’s finalization phase.
Your Ultimate FAQ Guide to Answering the Question Does 7 Eleven Own Speedway?
When it comes to convenience stores in the US, 7 Eleven and Speedway are two of the most recognizable brands. They both have a reputation for offering customers quick and easy access to snacks, drinks, and other essentials. But there’s been some confusion over whether or not these two companies are actually connected. So, does 7 Eleven own Speedway? Let’s dive into the ultimate FAQ guide to find out.
First things first: what is 7 Eleven?
7 Eleven is one of the largest convenience store chains in the world, with more than 70,000 stores in 17 countries. The company was founded in Dallas, Texas in 1927 and quickly became known for its innovative business model – staying open 24 hours a day, seven days a week.
What about Speedway?
Speedway is another major player when it comes to convenience stores in the US. With more than 4,000 locations across the country, this company is known for offering competitive prices on gas as well as snacks and other goods.
So do they have any connection at all?
Despite some speculation that these two companies might be linked in some way (after all, they do seem awfully similar), there is actually no direct ownership relationship between them. In fact, while both brands are owned by Japanese retail giant Seven & i Holdings Co., Ltd., they operate completely independently from each other.
Why does Seven & i Holdings own both companies then?
It’s all part of their corporate strategy. Seven & i Holdings focuses on building global retail networks by investing in different types of businesses across multiple markets. By owning both 7 Eleven and Speedway (as well as several other brands), they can combine resources and knowledge to create even stronger retail offerings for customers around the world.
Are there any similarities between these two stores?
Yes! Despite being separate entities with unique branding and operations strategies, there are definitely similarities between 7 Eleven and Speedway. For example, both chains offer a wide range of products including snacks, drinks, grocery items, and personal care essentials. They’re also both known for their convenience factor – with many locations open 24 hours a day for customers who need quick access to goods.
So what’s the bottom line?
No, 7 Eleven does not own Speedway. Both companies operate independently from each other even though they are owned by the same parent company. So whether you prefer the iconic green and orange branding of 7 Eleven or the blue and red color scheme of Speedway, you can rest easy knowing that these two stores operate on their own terms – but with some shared resources from Seven & i Holdings behind them.
