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Marathon sells Speedway to 7-Eleven for $21B in cash

Yahoo Finance's Alexis Christoforous and Jared Blikre discuss Marathon Petroleum's decision to sell the “Speedway” line of convenience stores and gas stations to 7-Eleven’s parent company for 21 billion dollars in cash.

Video Transcript

INES FERRE: There is a big deal this morning that could change how you and I buy gasoline. Marathon Petroleum is selling it's Speedway line of convenience stores and gas stations to 7-Eleven's parent company. The price tag here-- $21 billion dollars in cash. Jared Blikre has more for us. Jared, huge deal. I think it's the biggest energy deal of the year so far.

JARED BLIKRE: Yeah, well, it's the biggest for 7-Eleven, the second biggest energy deal of the year. Got to go back to Chevron is also in that space. Depends on how you add the debt and leverage. So the bottom line is 7-Eleven's parent company, Seven & i, is going to buy about 3,900 stores, and it's going to add to 9,800 locations operated by 7-Eleven.

These are all these Sunoco-- excuse me, not Sunoco. They bought Sunoco stations a number of years ago, and that was a $3.3 billion dollar deal. So this is going to add to that footprint that they have been building here in the US.

And we can see Marathon Petroleum shares are up about 7% in the premarket. They had been up as much as 10%, 12% just a little bit ago. And taking a look at the chart year-to-date for Marathon-- well, operator error there.

Checking out the chart of Marathon Petroleum year-to-date is down 36%, along with a number of other energy companies. And Seven & i holdings, which is listed in Tokyo. We can see that company is down about 23% percent, and that is a fresh 52-week low for them. That is a deal that's going to be paid-- partly financed in debt, but it's going to be paid in cash overall.

So again, this is a $21 billion dollar deal. 7-Eleven buying all these stations for the Speedway gas stations, and another large deal. Merger Monday.