Seven & i Holdings Co., the parent company of 7-Eleven, has canceled plans to acquire Marathon Petroleum Corp.’s Speedway, according to Bloomberg News.
Marathon Petroleum had been in exclusive talks to buy Speedway for $22 billion and had been setting up financing for the expected transaction, as of Feb. 20, but changed course this week. One of the factors that impacted negotiations was reportedly the coronavirus, which is creating economic uncertainty. A person familiar with the proceedings told Bloomberg News that Seven & i decided not to proceed with the transaction on concerns over valuations.
The deal would have marked a record acquisition for Tokyo-based Seven & i, which operates 69,000 stores worldwide.
“A potential withdrawal of the Speedway deal, amid the coronavirus outbreak, would be a significant headwind to Marathon’s efforts to restore its balance sheet. It would delay proceeds needed to convert MPLX to a corporation and to stave off pressure from activists to further dismantle the company,” Analysts Fernando Valle and Michael Kay told Bloomberg News.