Revving Up for Change: The Latest on Speedway’s Sale

Short answer speedway sold:

Speedway Motorsports, LLC, a leading marketer and promoter of motorsports entertainment in the United States, is a company that has been involved in the acquisition and sale of various speedways throughout the years. Some of their most recent acquisitions include Gateway International Raceway, New Hampshire Motor Speedway, and Kentucky Speedway.

A Step-by-Step Guide to Understanding the Sale of Speedway

The sale of a business can be a complicated and stressful process, especially when it comes to companies as large and prominent as Speedway. Considering the recent news surrounding the sale of Speedway to 7-Eleven for $21 billion, it’s important for investors and industry enthusiasts alike to understand the ins-and-outs of this complex transaction.

Whether you are looking to invest in potential opportunities or simply curious about the behind-the-scenes workings of corporate mergers and acquisitions, this step-by-step guide will provide a comprehensive summary of what you need to know about the sale of Speedway.

Step 1: Understanding the Background

Before diving into the details of the sale, let’s take a look at some background information on Speedway. Originally founded in 1959 as Speedway 79, it has grown into one of the largest convenience store chains in America with over 3,900 locations across 35 states. It is currently owned by Marathon Petroleum Corporation (MPC), an energy company that operates refineries and pipelines around America.

Marathon initially announced its plan to spin off Speedway into an independent publicly-traded company back in October 2019. The goal was to separate their convenience store operations from their oil refining business, to boost shareholder value.

However, due to market pressures caused by COVID-19 pandemic and macroeconomic challenges in energy markets combined with interest from potential buyers; Marathon reevaluated its initial plans.

Step 2: Deal Negotiation

After putting up for sales signs Marathon received bids from multiple potential buyers for Speedway which is valued between $16-18 billion dollars. Ultimately offering highest bid acquirer turned out be none other than the iconic brand –7 Eleven comprising Japanese retail giant Seven & I Holdings.

In August 2020, Seven & I Holdings submitted an offer worth $21 billion dollars which Marathon Petroleum ultimately accepted marking significant milestone transaction within Convinience Store Industry.

Step 3: Regulatory Review

With deal accepted, the next step was regulatory approval by both FTC and DOJ. The Federal Trade Commission (FTC) works to promote competition, and protect and educate consumers. It reviews mergers and acquisitions (M&A) to ensure they comply with antitrust laws and will not lead to a less competitive marketplace.

During acquisition review period concerns were raised on possible market monopoly overcharge, controlling secondary supply chain components such as refining gasoline; this review process can last months or up to years depending on case complexity.

Step 4: Acquisition Completion

Once regulatory approvals are obtained, Marathon Petroleum expects the acquisition of Speedway will conclude towards the end of January 2021. After closing out some key contractual requirements including employee transferal, store conversion from Cards Accepted From Company To Visa; 7 Eleven will own all consumer fuels sales services offered across existing Speedway’s chains along with vast inventory available at site stores.

In conclusion, understanding the sale of a large corporation like Speedway can be a challenging task due to issues related to regulation-compliance and complex financial considerations involved in these transactions.

Speedway Sold: Your FAQs Answered

Speedway, the popular chain of the gas station and convenience store was recently sold to 7-Eleven Inc. in a deal worth over $21 billion. This sale has left many people with questions about what this will mean for Speedway customers, employees, and shareholders. In this blog piece, we’ll answer some of your most pressing FAQs about the Speedway sale.

What is Speedway?

Before diving into the FAQs, let’s establish what exactly Speedway is. Speedway is an American chain of gas stations and convenience stores that operates primarily in the Midwest and East Coast regions of the United States. Founded in 1959 by William Swartz and headquartered in Enon, Ohio, it has since grown to become one of America’s largest chains with over 4,000 locations across 36 states.

What does this sale mean for Speedway customers?

For customers of Speedway, not much should change in terms of day-to-day operations. The brand will remain intact as it will operate under 7-Eleven ownership as a subsidiary company. This means that you can still expect to see all your favorite snacks and drinks on their shelves as well as continue fueling up at their pumps.

What does this sale mean for employees?

The acquisition by 7-Eleven may cause some changes in employment positions; however 7-Eleven has stated that they do not plan to lay off any current employees which should provide some peace of mind for those currently working at a Speedway location.

What does this mean for shareholders?

As part of the agreement between Marathon Petroleum Corp (the previous owners/buyers) and Seven & I Holding Co (7/11 parent company) shareholders will receive approximately $16.5 billion cash proceeds as well as retaining their stake through shares owning successful franchise stores which should help them maintain favorable stock value long term.

Conclusion:

In summary, although there will be changes due to its new owner—it shouldn’t have any major implications to customers, and while it will have future impact on employment positions; 7-Eleven has stated that they will not lay off any current Speedway employees. As for the shareholders they should maintain profits from both monetary payments out and retained franchise stake value. So, we wish for a smooth transition of ownership as well as continued convenience shopping at Speedway locations.

Breaking Down the Speedy Process of Speedway’s Sale

The sale of Speedway to 7-Eleven has been making headlines lately, and for good reason. It’s a massive deal, with a reported price tag of $21 billion. But what exactly is Speedway, and why is it such a big deal that it’s changing hands?

Let’s start with the basics: Speedway is a chain of gas stations and convenience stores that operates primarily in the Midwest and East Coast regions of the United States. It was founded in 1959 as Speedway 79 by Tony Roush, who opened his first location in Michigan. Over the years, the company grew through acquisitions and partnerships with other retailers, eventually becoming one of the largest gasoline retailers in America.

So why is 7-Eleven interested in buying Speedway? Well, for starters, it will give them an even larger presence in key markets where they already operate thousands of stores. This includes cities like New York City, Chicago, Philadelphia, Miami and Boston – all places where there is plenty of room to grow and establish a stronger foothold.

But beyond that, Speedway has quickly become known for its food offerings inside its convenience stores. The chain has invested heavily in transforming itself into a quick-service restaurant (QSR) competitor over recent years with fresh-food programs under its SuperAmerica banner.

And this seems to be an area where 7-Eleven feels there is some significant potential growth opportunity because food sales have continued to outpace those from drinks or cigarettes at convenience stores across the nation.

Now let’s break down how the sale actually came about: In August 2019, Marathon Petroleum announced that it would be considering “strategic alternatives” for its retail operations. That meant either spinning off or selling all nine million gas station-and-convenience store locations owned by its subsidiary MPC.

In March 2020 they announced that 33% shareholder Seven & i Holdings –the parent company behind 7-Eleven– for $21 billion. The deal is anticipated to close in Q1 2021, creating a company with more than 14,000 locations across the United States.

So there you have it – the speedy process of Speedway’s sale to 7-Eleven. But what will this mean for consumers? Right now, it’s too early to say for sure, but one thing is certain: both companies are committed to providing their customers with high-quality products and services at competitive prices. And that’s something everyone can appreciate!