Finance

7-Eleven Owner to Buy Marathon’s Speedway

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it seems this deal is finally happening what kind of scale does this add to 7-eleven chain in north america well it has about 3 900 stores so that brings them to 14 000 which is really quite large uh much larger than any any rival in north america and it expands on they’ve already done some earlier acquisitions of this type of convenience store the kind that’s attached to a gas station uh about three years ago they bought uh about 500 from cynical lp gas stations uh so that’s that’s been a good model for them to buy these and they they’ve done well incorporating them into their chain so so much uncertainty with the economy obviously so why the timing to do this deal now it does seem a little surprising you know normally deals like this are hashed out in boardrooms and it requires a lot of meetings so you wonder i i assume that a lot of the details were finalized over zoom uh given the pandemic but this is the deal that as you as you alluded to have been in the in the pod for quite a while they’ve been negotiating this since last fall a marathon had been under pressure from activist investors uh to spin out this part of their business and sure enough that that’s what they’ve done there were a couple other other bidders uh bidding up the price on this but 20 20 billion is where they were at last fall so it’s not far off from that price it’s essentially the same sort of dimension of this deal and of course uh marathon oil is is in a difficult position now with oil prices uh in the tank they really had to try to generate some money the pressure is only increased on them you also have the yen uh getting a bit stronger against the dollar that works in favor of the deal because it makes it uh in japanese terms it makes it cheaper for 7-eleven to complete this side of the deal

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