The best regulated crypto exchange
Find out why?

Japan's Seven & i drops bid to buy US Speedway gas stations

By Ramla Soni

Seven & i, which runs the 7-Eleven convenience store chain, had reportedly been in talks to buy the Speedway business for $22bn

Japanese retail group Seven & i Holdings has dropped its bid to acquire Marathon Petroleum Corp’s Speedway gas stations in the US after resisting the price.

Seven & i, which runs the 7-Eleven convenience store chain, had reportedly been in exclusive talks to buy the Speedway business for $22bn (£17bn, €19bn).

However, after considering the deal, the company decided against it, deeming the price to be too high, said a source familiar with the matter.

The negotiations came after Marathon said that it would launch a sweeping restructuring last year. This included spinning off its Speedway retail business, which it said was worth as much as $18bn including debt.

Activist investor Elliott Management had encouraged Marathon to split into three companies, for a boost of as much as $40bn to shareholder value.

For Seven & i, the deal would have added to a portfolio of more than 1,000 gas stations and corner stores in the US that it acquired in 2017 through a $3.3bn deal with Sunoco.

Shares in Seven & i fell more than 15 per cent since the talks were first reported, outstripping a decline of 9 per cent in the Nikkei 225 average.

7-Eleven stores originated in America but Japanese retail executive Toshifumi Suzuki went from an initial tie-up to a chain selling everything from drinks to ready-made lunches and underwear. He began expanding the stores throughout Japan in the 1970s.

Seven & i Holdings, which also owns Ito-Yokado supermarkets, later rescued the US business, which went through bankruptcy.

FURTHER READING: Should you invest in Japan? The threats and opportunities

FURTHER READING: Japan to add digital yen to its 2020 agenda

Like to share your thoughts and ideas about crypto and trading? You could join us as an external author. Email us on [email protected] to find out how you could become a contributor.
Subscribe to news
iMac Image
The most beautiful trading app
google play storeapple store
iPhone Image
iPhone Image