WASHINGTON -- Following a public comment period, the Federal Trade Commission (FTC) has approved a final order settling charges that 7-Eleven Inc.’s $3.3 billion acquisition of more than 1,000 Sunoco LP convenience stores would violate antitrust law.
7-Eleven closed on the acquisition of approximately 1,030 Sunoco c-stores in 17 states, mainly in Texas, New York and Florida, in late January.
This acquisition is the largest in 7-Eleven’s history and will bring the retailer’s total store count to approximately 9,700 in the United States and Canada.
According to the FTC complaint, the acquisition as proposed by Tokyo-based parent company Seven & i Holdings Co. Ltd. would have harmed competition in 76 local markets in 20 metropolitan statistical areas.
Under the terms of the final order, 7-Eleven is required to sell 26 retail fuel outlets that it owns to Sunoco, and Sunoco is required to retain 33 fuel outlets that 7-Eleven otherwise would have acquired. Seven & i has agreed to these conditions to settle the FTC charges.
Sunoco said it intends to convert the acquired or retained stations from company-operated sites to commission-agent sites. Sunoco will have full control over fuel pricing and supply at all of these locations.
7-Eleven’s acquisition of the company-operated Sunoco c-stores takes advantage of Sunoco’s shift in focus to wholesale fuel.
Dallas-based Sunoco distributes motor fuel to about 9,200 convenience stores, independent dealers, commercial customers and distributors in more than 30 states. Its general partner, Sunoco GP LLC, is owned by Energy Transfer Equity LP, Dallas. Following the 7-Eleven and commission-agent deals, Sunoco will have approximately 80 company-operated sites (including 54 Aloha Petroleum sites in Hawaii), approximately 400 commission-agent locations, approximately 2,700 dealer locations (including 979 7-Eleven sites) and approximately 3,800 distributor locations, according to the company.
Irving, Texas-based 7-Eleven operates, franchises or licenses more than 63,000 c-stores in 18 countries, including 10,900 in North America.
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