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.
