Short answer speedway bought by 7/11:
In August 2020, 7-Eleven announced it had acquired Speedway, a chain of convenience stores and gas stations with over 3,800 locations across the United States, for $21 billion. The acquisition made 7-Eleven the largest convenience store chain in the country.
How Speedway Got Bought by 7/11: A Look at the Process
The acquisition of Speedway by 7/11 has been making waves in the business world since it was first announced. The move represents a major shift in the convenience store industry, with two of the biggest players coming together to create an even bigger and more powerful entity. But how did this acquisition come about? What was the process behind it? In this blog post, we’ll take a closer look at the steps leading up to the deal, including negotiations, regulatory hurdles, and more.
Negotiations Begin
The process of acquiring Speedway by 7/11 began in earnest back in August 2019. At that time, Marathon Petroleum Corp (MPC), which owned Speedway and had been considering spinning it off into a separate company for some time, announced that it would be exploring strategic alternatives for the chain. This sparked interest from several potential buyers, including 7/11’s parent company Seven & i Holdings Co., Ltd..
With negotiations underway, both sides began working out details such as pricing and structural concerns like financing options. It became clear early on that buying out Speedway would be no easy feat. First of all, Speedway operates over 4,000 stores across 36 states meaning its valuation could reach close to $20 billion; one tough nut to swallow.
Regulatory Hurdles
However challenging financing may have seemed though – there were other noteworthy hurdles awaiting further down the line; when one purchase involves entire corporations or competitors merging or acquiring companies there is always a regulatory body getting involved somehow! Two main agencies concern themselves when big businesses ideas translate ambition into heavyweight commercial realities: The Federal Trade Commission (FTC) & The Department Of Justice (DOJ). For this particular acquisition though FTC approved quickly enough announcing its approval October of last year whilst DOJ took longer spending quite some time extensively scrutinizing researching proof of anti-trust violation risk issues which finally moved through in May this year at last legally authorizing the deal to go through.
The Art of the Deal
In conclusion, acquiring Speedway was not a task for the faint-hearted; both sides had many obstacles and factors to consider through each step of the process. Among them were being mindful of regulations, financing carefully considering transactional risks despite high profile problematic events which occur as all such deals have ingrained within them (some which we might likely never hear about) and making sure that everything is done in a transparent way. But after months of hard work and intense negotiation, 7/11 successfully acquired Speedway for approximately $21 billion with plans to eventually rebrand as “7-Eleven” stores in order to better align under one powerful brand name.
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The Step-by-Step Guide to the Speedway and 7/11 Acquisition
As one of the largest convenience store chains in the United States, 7-Eleven is a household name for many. However, there are some lesser known details about its recent acquisition of Speedway that have left people wondering what exactly went down. If you’re one of those people, don’t worry – we’ve got you covered with this step-by-step guide to the Speedway and 7/11 acquisition.
Step 1: The Deal
In August 2020, Japanese conglomerate Seven & i Holdings Co., which owns and operates 7-Eleven stores globally, announced that it had entered into an agreement to acquire Speedway from Marathon Petroleum Corp. for $21 billion in cash.
Step 2: Antitrust Concerns
After the news broke, concerns over anticompetitive practices arose as analysts speculated that combining two of the country’s largest convenience store chains would give Seven & i Holdings too much control over gasoline prices and retail competition in certain regions.
Step 3: Scrutiny By Regulatory Groups
The Federal Trade Commission (FTC) launched a review of the deal after noting that such a merger could “substantially lessen competition” in numerous regions across the US where both companies had sizable operations.
Step 4: Reduction of Speedway Presence
In response to regulatory scrutiny, Seven & i Holdings agreed to reduce its presence by divesting itself of approximately 294 Speedway locations across nine states before any final approval was provided by governmental regulators.
Step 5: Approval
Finally In May 2021 , governmental regulators at federal trade commission approved the transaction on condition that they sell off around eight percentof stations.
Step6: Completion Of Transaction:
On June 23rd 2021_ The $21 billion transaction between Marathon Petroleum Corp. and Seven & i Holdings has finally been completed; making Seven &I holdings owner of more than14k Stores globally including morethan9K stores in North America alone.
Step 7: Sealing The Deal:
In the official statement released by the company after sealing the deal, CEO of Seven & i Holdings, Ryuichi Isaka, said: “The closing of this transaction marks a significant milestone in our company’s history and supports our continued strategy to enlarge our footprint in North America.”
There you have it – everything you need to know about the Speedway and 7/11 acquisition is right here. Whether you’re a savvy business person or just someone who likes to stay informed, this guide will help you understand how one of the largest convenience store chains in the world grew even bigger.
Frequently Asked Questions About the Speedway and 7/11 Merger
The merger between Speedway and 7/11, two of the most recognizable names in retail convenience stores, has created a lot of buzz in recent months. As with any major business deal, there are a lot of questions and uncertainties surrounding this merger. Here are some frequently asked questions that consumers may have about the Speedway and 7/11 merger.
1. What motivated the merger?
Speedway and 7/11 saw an opportunity to further their growth potential by joining forces. The transaction expands 7-Eleven’s footprint into 47 states across the United States, including Hawaii for the first time, while adding nearly 4,000 Speedway locations to its portfolio. It also creates one of the largest companies in terms of store count and revenue in North America.
2. What changes should customers expect?
Initially, no significant changes will occur at either chain’s stores as they continue to operate separately while integrating systems and processes over time behind-the-scenes. However, over time it is likely that certain products or services available at one chain may become available at all locations under both brands’ names.
3. Will employee positions be eliminated?
There may be job redundancies caused by combining parts of both companies as they streamline their operations, but it’s too early to say how many or what specific roles will be affected by this merger.
4. Will prices change following the merger?
While there is always a possibility that prices could fluctuate with any transaction involving two corporations involved in competition together prior to a merger; it’s not a given outcome in every case.
5. How long will it take for the integration process?
While there isn’t yet a timeline for when customers can expect changes to stores or company policies as integration takes place –– both companies say they are taking steps to ensure customer experience remains unchanged at this stage.
6. Can customers still use loyalty programs at each chain after the merge?
Yes! Both chains say that customers can still use their respective loyalty programs as usual, at this stage.
The merger between Speedway and 7/11 is still a developing situation with many unanswered questions but these are the most often asked inquiries out there regarding the merger. Consumers along with analysts alike have expressed enthusiasm about increased innovation and proximity of both brands doing so cohesively after the deal.
