Seven & I drops Speedway US bid
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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.
Questions & Answers
Q.What was the main reason Seven & I decided to cancel the acquisition of Speedway?
What was the main reason Seven & I decided to cancel the acquisition of Speedway?
The group's board of directors considered the expected asking price of around US$22 billion for the American petrol station chain to be too expensive, leading to the termination of the deal.
Q.What was Seven & I's strategic goal behind attempting to acquire Speedway?
What was Seven & I's strategic goal behind attempting to acquire Speedway?
Seven & I had hoped the acquisition would serve as a way to expand its operations in the US market, utilising Speedway’s approximately 4000 locations, which also include convenience stores.
Q.Does Seven & I currently own any other convenience store chains in the US, and if so, how many outlets do they have?
Does Seven & I currently own any other convenience store chains in the US, and if so, how many outlets do they have?
Yes, Seven & I has wholly owned an American convenience store chain since 2005. This chain currently operates with approximately 9000 outlets across the country.