Marathon Petroleum to receive bids for Speedway gas stations
Marathon Petroleum (NYSE: MPC) this week is expected to get first-round bids of between $15 billion and $18 billion for its Speedway gas station chain.
Why it matters: The price tag is large, but still reflects a pretty steep pandemic discount. Marathon had been in exclusive negotiations to sell Speedway for between $20 billion and $22 billion to 7-Eleven owner Seven & i Holdings, before talks fizzled in early March.
- First-round bidders reportedly will include Seven & i Holdings (Tokyo: 3382), Circle K owner Alimentation Couche-Tard (TSX: ATD), and private equity firm TDR Capital.
The bottom line: "If Marathon does not secure a sale of Speedway, it will seek to spin it off to its shareholders. Under pressure from hedge fund Elliott Management, the Findlay, Ohio-based company has said the spin-off would happen by the first quarter of 2021. Speedway comprises more than 3,900 convenience stores." — David French & Greg Roumeliotis, Reuters