US regulator says Speedway deal ‘illegal’: Update

Federal regulators have not signed off on Marathon Petroleum's $21bn sale of its Speedway retail network, half of the trade commission said in an unusual rebuke of the companies.

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Federal Trade Commission acting chairwoman Rebecca Kelly Slaughter and commissioner Rohit Chopra said the commission continued to investigate the transaction and had “significant competitive concerns in hundreds of local retail gasoline and diesel fuel markets across the country.”

Both officials “have reason to believe that this transaction is illegal” under US law.

“The commission has spent significant resources investigating this transaction but has not yet come to an agreement with the parties and a majority of the commission that would fully resolve the competitive concerns,” the commissioners said.

“The parties have closed their transaction at their own risk.”

Marathon Petroleum and 7-Eleven owner 7 & i holdings earlier today said they had closed on the $21bn sale of its Speedway retail network.

The US independent refiner plans to use the proceeds of the sale to 7 & i to repurchase stock and pay down long-term debt. The deal includes a 15-year supply agreement of roughly 500,000 b/d of fuel.

Marathon pursued the sale of its 3,900-store Speedway network in 2019 at the urging of investors unpersuaded by the value of an integrated company. The deal was under regulatory review since being struck last August.

The Speedway network covers 35 states and will bring 7-Eleven’s US presence to about 13,700 stores in 47 states.

The FTC investigates potential uncompetitive mergers and practices. The commission is divided 2-2 between Democrats and Republicans, but that could soon change. President Joe Biden on 22 March nominated Lina Khan to fill a Democratic vacancy at the FTC, and a US senate panel this week advanced her nomination.

About Stu Turley 2288 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience in implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor in this space. Stuart has led the “Total Corporate Digital Integration” platform at Sandstone and works with Sandstone clients to help integrate all aspects of modern digital business. He is also the Executive Publisher of, the best source for 24/7 energy news coverage and is the Co-Host of the energy news video and Podcast Energy News Beat. Stuart is on Board Member of ASN Productions, DI Communities Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.