Short answer does 7-11 own speedway:
Yes, 7-Eleven owns Speedway. In August 2020, Seven & I Holdings Co., the parent company of 7-Eleven announced the acquisition of Speedway gas stations from Marathon Petroleum Corp in a $21 billion deal.
Understanding How 7-11 Came to Own Speedway: A Comprehensive Guide
If you’re a fan of convenience stores, then the news that 7-Eleven has acquired Speedway might already be on your radar. However, if like most people, this topic doesn’t immediately spark joy for you or raise any eyebrows – stick with us here. We’ve put together a comprehensive guide to understanding how over seven billion dollars was spent in acquisition and what this means for consumers.
Firstly, let’s get some quick background information out there. Both 7-Eleven and Speedway are US-based chains specializing in convenience stores; while 7-Eleven has just over nine thousand outlets all across the country (and beyond), Speedway boasts around three thousand locations nationwide.
Now, onto the matter at hand: why did 7-Eleven pay over seven billion dollars for Speedway? The answer is simple yet complex simultaneously: they wanted to expand their reach even further into untapped markets.
Through acquisition and opening new branches, companies can increase their market share by widening their customer base naturally. In simpler words: more customers = more sales = more profit.
What makes this an exciting prospect is that both brands will now become part of one expansive system set up under Seven & i Holdings Co., Ltd.; increasing economies of scale whilst cutting costs through consolidating supply chain activities such as purchasing inputs from suppliers and distribution logistics between physical locations.
Another huge perk behind this move lies within mobile ordering apps which have boomed during pandemic times where social distancing regulations were enforced to limit interactions inside brick-and-mortar establishments as much as possible. Through combining two different apps catering towards specific online orders – Scanned & Delivered App for deliveries done directly by store staff members (available only through participating 7 Eleven locations) versus current delivery marketplace partners Deliveroo or DoorDash used by SpeedWay thus far- having all-in-one app capability puts them on equal footing with other retail giants vying up against each other big battles being played out amongst Walmart, Amazon, Target, Best Buy even.
However there is also some chatter in the media about how “oligopolistic” this move might be on a larger scheme – meaning that if more convenience stores were to merge and form major monopolies then fair competition could become difficult with hurtful effects for consumers (such as higher prices). No two ways about it: balancing consumer interests versus business objectives is always an act of diplomacy performing high level conjecture through measured risk analysis & market insights.
Overall though this acquisition by 7 Eleven will shake things up in an already fiercely competitive industry. Stay tuned to see what impact such moves will have in the future growth trajectory for both companies involved!
Does 7-11 Really Own Speedway? A Step-by-Step Analysis
The convenience store giant, 7-Eleven, has been a household name for more than half a century. With thousands of stores located all over the world, it is no surprise that this iconic brand continues to grow and expand its reach. However, rumors have been circulating online claiming that 7-Eleven now owns Speedway – one of their biggest competitors in the US market.
At first glance, it seems unlikely that a company would intentionally purchase its competition. But upon further investigation, there might be some truth to these claims. So let’s take a step-by-step analysis of whether or not 7-Eleven really owns Speedway.
Step One: The Acquisition
In August 2020, Japanese retail giant Seven & i Holdings made an announcement stating they would acquire Marathon Petroleum Corp.’s Speedway gas station chain for billion. Seven & i Holdings is the parent company of 7-Eleven. The deal included over 3,900 locations across America and was expected to close by early 2021.
Step Two: Regulatory Approval
Before finalizing any merger or acquisition deals in the United States market companies must receive regulatory approval from government agencies such as the Federal Trade Commission (FTC) and Department of Justice Antitrust Division (DOJ). Both organizations closely scrutinize potential acquisitions to ensure they do not violate antitrust laws designed to promote fair competition in the marketplace.
Seven months after announcing their acquisition agreement with Marathon Petroleum Corp., Seven & i Holdings received regulatory approval from both FTC and DOJ Antitrust Division allowing them to proceed with purchasing Speedway gas station chains across America.
Step Three: Legal Ownership Transfer
Once regulatory Approvals are obtained then only ownership transfer process happens.Real estate deeds and other legal paperwork finalize ownership changes occur between legal entities representing each party which results in transaction completion . In February 2021 , Seven & i holdings completed purchase which officially makes speedway inc owned subsidiary under seven-eleven.
In conclusion, yes, 7-Eleven does own Speedway. The acquisition process took time and included multiple steps that were required for regulatory approval and ownership transfer from Marathon Petroleum Corp to Seven & i holdings.The strategic alliance allows the company to expand its reach even further into the lucrative convenience store market in America while also diversifying its products with gasoline sales business too. Though it might seem like a bold move purchasing a competitor, this acquisition strengthens 7-Eleven’s position in the industry- only time can tell what their next step will be!
Your FAQs Answered: Does 7-11 Actually Own Speedway?
If you’re like most people, you’ve probably wondered whether 7-11 actually owns Speedway. After all, both convenience store chains share many similarities in terms of product offerings and layout. However, as with any business-related question, the answer is a bit more complex than a simple yes or no.
To dive into things further, the parent company of 7-11 is Seven & i Holdings Co., Ltd. This Japanese-based organization has an impressive portfolio that includes retail powerhouses such as Sogo & Seibu, Ito-Yokado Co., Ltd., and York-Benimaru Co., Ltd. Interestingly enough though, it doesn’t actually own Speedway outright.
Rather, Speedway was acquired by Marathon Petroleum Corporation (MPC) in 2018 for $23.3 billion dollars – from then on being known as “Speedway LLC”. While MPC operates primarily within the oil refining industry (it’s one of America’s largest independent refiners), management saw potential benefits to expanding their retail operations through acquiring another well-known chain.
As part of its agreement with Seven & i Holdings Co., LTD regarding Speedway’s acquisition process; they partnered up together under a Licensing Agreement where 7-Eleven would have exclusive rights to brand itself onto certain merchandise sold at all US based Speedways.
So how does this affect your daily routine? In practical terms: not much! Both companies will continue operating independently without major changes–although we might see some innovations soon after COVID such as adoption of new technologies like online ordering or delivery options becoming commonplace across stores nationwide!
In conclusion; while they don’t directly own each other there are certainly elements tying them together including mutual ownership/partnerships agreements which allow them to operate in tandem which puts them both on even playing fields when it comes down competition-wise… Perhaps next time someone asks if 7-11 owns speedway you can confidently say “No.” But then add, “But they’re definitely linked!”
