7-Eleven Inc and Marathon Petroleum Corp Plans to Remove Stores

FTC said that 7-Eleven Inc. and Marathon Petroleum Corp. agreed to divest hundreds of stores used to sell gasoline and diesel fuel in 293 local markets across 20 states.The FTC Friday said the move settles charges that 7-Eleven’s acquisition of Marathon’s Speedway subsidiary violated federal antitrust laws.7-Eleven owns, operates, and franchises about 9,000 convenience stores in the U.S., making it the largest U.S. convenience store chain. Almost half of 7-Eleven’s stores also sell fuel. 7-Eleven is a subsidiary of the Tokyo-based Seven & i Holdings Co., Ltd.

Marathon Petroleum Corp operates a vertically integrated refining, marketing, retail, and transportation system for petroleum and petroleum products.Marathon Petroleum Corp controlled Speedway, which operates almost 4,000 retail fuel outlets across the U.S.According to the complaint, markets for retail gasoline and retail diesel fuel are highly localized and consumers have no economic or practical alternatives to the retail sale of gasoline or diesel fuel.

The complaint declared the acquisition would harm competition for the retail sale of fuel in 293 local markets across the U.S.The grievance declared that without a remedy, the acquisition reduced the number of independent competitors to three or fewer in each of the 293 markets.

Under the terms of the proposed consent order, 7-Eleven and Marathon are required to divest 124 retail fuel outlets to Anabi Oil, comprising 123 Speedway outlets and one 7-Eleven outlet. They are also required to divest 106 retail fuel outlets to Cross America Partners, comprising 105 Speedway outlets and one 7-Eleven outlet, and they must divest 63 Speedway retail fuel outlets to Jacksons Food Stores.The recommended order prohibits 7-Eleven from enforcing any non compete provisions as to any franchisees or employees working at or doing business with the divested assets.