The Federal Trade Commission (FTC) has officially proposed a consent order in relation to 7-Eleven’s acquisition of Marathon’s Speedway convenience chain. In response, 7-Eleven and Marathon agreed to divest from locations in almost 300 markets.
7-Eleven previously closed the $21 billion acquisition that included the purchase of nearly 4,000 Speedway stores in May. Although members of the FTC publicly expressed concerns about the deal, stating that it violated antitrust laws, the acquisition went forward.
The agreement for 7-Eleven and Marathon to divest hundreds of stores is being done to settle FTC’s claims that the transaction was either a merger-to-monopoly or a reduction of the number of local competitors from three to two. The FTC further commented that the complaint against the acquisition of Speedway stems from the belief that it would eliminate competition in local markets in states like Ohio.
The release reported that, under the terms laid out in the proposed consent order, 7-Eleven and Marathon are required to divest 124 retail fuel outlets to Anabi Oil, comprising 123 Speedway outlets and one 7-Eleven outlet. They are also required to divest 106 retail fuel outlets to Cross America Partners, comprising 105 Speedway outlets and one 7-Eleven outlet. In addition to that, those companies must divest 63 Speedway retail fuel outlets to Jacksons Food Stores.
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