US: FTC agrees to 7—Eleven’s divestments in Sunoco deal

Seven & i Holdings, the Tokyo-based parent company of the 7-Eleven network of stores, agreed to sell and divest some of its stores in its proposed US$3.3 billion acquisition of 1,100 Sunoco outlets, the US Federal Trade Commission (FTC) said Friday, January 19.

Under the terms of the consent agreement, 7-Eleven will sell 26 retail fuel outlets that it owns to Sunoco, and Sunoco will retain 33 fuel outlets that 7-Eleven otherwise would have acquired. The FTC said without the sales the acquisition would harm competition in 76 local markets across 20 metropolitan areas and potentially result in higher prices. The deal was announced in April 2017.

The FTC said without the conditions, 7-Eleven would have a monopoly in some markets. The deal will preserve competition as Sunoco will convert the stations retained and acquired from 7-Eleven from company-owned sites to stations run by independent operators.

The remedy will “preserve competition as it is today, ensure that the divestiture assets go to a viable, large-scale competitor, and reduce the risks and costs associated with asset integration,” the FTC said.

Full Content: Law360

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