Convenience Store Dinosaur Emerges... Seven-Eleven Acquires US Industry No.3 for 25 Trillion Won

Considered a Mega M&A Deal Since the COVID-19 Pandemic

▲Speedway, the third-largest convenience store chain in the United States, recently acquired by the Japanese distribution giant Seven & I Holdings.
[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Seven & I Holdings, a Japanese retail giant operating the global convenience store chain Seven-Eleven, is acquiring Speedway, a convenience store chain under the U.S. oil company Marathon Petroleum, for 2.2 trillion yen (approximately 25 trillion won), Nihon Keizai Shimbun reported on the 3rd.

This is considered the largest merger and acquisition (M&A) deal since the COVID-19 pandemic. The sale is planned to be finalized in the first quarter of next year.

This merger between Seven-Eleven, the number one convenience store chain in the U.S., and Speedway, the third largest, is regarded as a "mega deal." Speedway operates about 3,900 stores combining convenience stores and gas stations. Once the acquisition is completed, Seven-Eleven is expected to strengthen its top position by increasing its North American stores to about 14,000.

Originally, Seven & I attempted to acquire Speedway in March, but the acquisition price of $22 billion (approximately 26 trillion won) was considered too expensive, leading to the cancellation of the plan.

However, as the convenience store market in Japan has reached saturation, the company decided to pursue a new growth strategy by actively targeting the North American market through this acquisition. The M&A contract will be finalized early next year, and under this agreement, Marathon Petroleum will supply Seven-Eleven with about 7.7 billion gallons of crude oil annually for the next 15 years.

Joe DePinto, CEO of Seven-Eleven, stated, "This is the largest acquisition since our founding," adding, "We will strengthen our presence in the U.S., focusing on the East Coast and Midwest regions."

Meanwhile, Alimentation Couche-Tard, a Canadian company well known for the brand 'Circle K,' holds about 8,000 stores in North America and maintains its position as the second largest convenience store operator in the U.S. market.

This content was produced with the assistance of AI translation services.