7-Eleven Inc has entered into an agreement to acquire Speedway, a leading convenience store chain, from Marathon Petroleum Corp for 21 billion dollars in cash.
As part of the agreement, 7-Eleven will acquire about 3,900 Speedway stores located in 35 states. Reports say the deal will be the biggest corporate acquisition globally since the coronavirus outbreak spread earlier this year.
"This acquisition is the largest in our company's history and will allow us to continue to grow and diversify our presence in the United States, particularly in the midwest and east coast," said Joe DePinto, President and Chief Executive Officer of 7-Eleven.
"By adding these quality locations to our portfolio, 7-Eleven will have the opportunity to bring convenience to more customers than ever before," he said in a statement.
Speedway and 7-Eleven have complementary geographic footprints with little overlap. 7-Eleven currently has over 9,800 stores in the United States and Canada and with Speedway's high-quality portfolio of nearly 3,900 stores.
The acquisition will bring 7-Eleven's total number of stores to about 14,000 in the United States and Canada.
Following the transaction, 7-Eleven will have a presence in 47 of the top 50 most populated metro areas in the United States, positioning the company as a clear industry leader in a fragmented industry with favourable macroeconomic trends.
In India, 7-Eleven has signed a master franchise agreement with Kishore Biy-led Future Retail Ltd to develop and operate 7-Eleven stores in India.
The expansion marks the company's first entry into India. The first 7-Eleven convenience store in the country is expected to open later this year.
Based at Irving in Texas, 7-Eleven operates, franchises and licenses more than 71,100 stores in 17 countries.
( With inputs from ANI )