Seven & I drops Speedway US bid

7-Eleven operator Seven & I has canceled its plans to purchase the American petrol station chain Speedway.

The deal was terminated because the expected asking price of around US$22 billion was considered too pricey by the group’s board of directors. The acquisition was hoped to be a vehicle for the group’s expansion in the US with Speedway’s approximately 4000 locations coupled with convenience stores.

A report in Nikkei suggested factors implicated in the canceled deal could include the risk of significant loss if revenues failed to meet expectations and the potential decline of the industry in general in the age of online shopping

The American convenience store chain has been wholly owned by Seven & I since 2005. It currently has around 9000 outlets.