Seven & I Holdings Co. has dropped its plan to acquire U.S. convenience store chain Speedway LLC, informed sources said.
The price for the acquisition, said to be around ¥2.5 trillion, was too high, a Seven & I official said Thursday.
The decision will apparently force Seven & I to review its overseas operations, which have been an engine of growth.
Speedway, a unit of U.S. refiner Marathon Petroleum Corp., was supposed to play an important role in strengthening Seven & I’s North American business, an analyst said. But ¥2.5 trillion price tag is equivalent to nearly half of the chain’s annual sales in Japan.
The deal would “weaken Seven & I’s finances,” another analyst said.
Seven & I has a goal of operating 20,000 convenience stores in the United States. It had about 9,000 stores there as of November after acquiring about 1,000 from Sunoco LP in 2018.
The company had hoped to raise that to around 13,000 by adding some 4,000 stores through the Speedway acquisition.
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