Marathon had been close to a deal with the parent of 7-Eleven Inc. earlier this year, but talks fell apart in March as the coronavirus pandemic took hold.
Photo: Stacie Scott/Bloomberg NewsFuel maker Marathon Petroleum Corp. MPC 0.32% said it has agreed to sell its gas stations to the owners of the 7-Eleven convenience store chain for $21 billion in the largest U.S. energy-related deal of the year.
The all-cash agreement with 7-Eleven Inc. comes less than a year after Marathon agreed to spin off its convenience-store chain, known as Speedway, under pressure from activist investors including Elliott Management Corp.
Findlay, Ohio-based Marathon had been close to a deal with Seven & I Holdings Co., SVNDY -3.19% the Japanese parent of 7-Eleven Inc., earlier this year, but talks fell apart in March as the coronavirus pandemic took hold. Other suitors included Canada-based convenience-store chain Alimentation Couche-Tard Inc. ATD.B -1.77%
“Our announcement crystalizes the significant value of the Speedway business, creates certainty around value realization and delivers on our commitment to unlock the value of our assets,” Marathon Chief Executive Michael Hennigan said in a statement.
The deal includes about 3,900 convenience stores and would bring 7-Eleven’s retail footprint in the U.S. and Canada to around 14,000 locations.
Under the deal, expected to close early next year, Marathon would supply 7-Eleven with about 7.7 billion gallons of fuel per year for 15 years.
“This acquisition is the largest in our company’s history and will allow us to continue to grow and diversify our presence in the U.S., particularly in the Midwest and East Coast,” 7-Eleven CEO Joe DePinto said in a statement. “By adding these quality locations to our portfolio, 7-Eleven will have the opportunity to bring convenience to more customers than ever before.”
After the transaction, Marathon will still operate refineries and a network of pipelines. The company said it expects the deal to generate about $16.5 billion in after-tax proceeds.
Write to Rebecca Elliott at rebecca.elliott@wsj.com
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