7-Eleven-Sunoco deal gets Federal Trade Commission approval

Following a public comment period, the Federal Trade Commission (FTC) has approved a final order settling charges that 7-Eleven Inc.’s $3.3 billion acquisition of more than 1,000 Sunoco LP convenience stores would violate antitrust law.

7-Eleven closed on the acquisition of approximately 1,030 Sunoco c-stores in 17 states, mainly in Texas, New York and Florida, in late January.

This acquisition is the largest in 7-Eleven’s history and will bring the retailer’s total store count to approximately 9,700 in the United States and Canada

According to the FTC complaint, the acquisition as proposed by Tokyo-based parent company Seven & i Holdings Co. Ltd. would have harmed competition in 76 local markets in 20 metropolitan statistical areas

Under the the final order, 7-Eleven is required to sell 26 retail fuel outlets that it owns to Sunoco, and Sunoco is required to retain 33 fuel outlets that 7-Eleven otherwise would have acquired

Sunoco intends to convert the acquired or retained stations from company-operated sites to agent sites. Sunoco will have full control over fuel pricing and supply of these locations.

7-Eleven’s acquisition of the company-operated Sunoco c-stores takes advantage of Sunoco’s shift in focus to wholesale fuel

Dallas-based Sunoco distributes motor fuel to about 9,200 convenience stores, independent dealers, commercial customers and distributors in more than 30 states.

Its general partner, Sunoco GP LLC, is owned by Energy Transfer Equity LP, Dallas. Following the 7-Eleven and commission-agent deals, Sunoco will have approximately 80 company-operated sites (including 54 Aloha Petroleum sites in Hawaii), approximately 400 commission-agent locations, approximately 2,700 dealer locations (including 979 7-Eleven sites) and approximately 3,800 distributor locations, according to the company

Irving, Texas-based 7-Eleven operates, franchises or licenses more than 63,000 c-stores in 18 countries, including 10,900 in North America.