FTC Chair Says 7-Eleven Owner’s 21 21 Billion Speedway Agreement May Be Invalid


The acting chairman of the Federal Trade Commission said the purchase of Speedway petrol stations by the owner of a 21-billion-dollar store chain could violate আইন 21 billion in competition laws.

Japanese retail giants Seven and I Holdings Agree to buy business – which owns about 3,900 petrol stations and convenience stores – is expected to further consolidate its position in the U.S. market in all cash deals from Marathon Petroleum last August.

The deal will boost Seventy and Amity’s expansion in the United States by 7 percent in 2017 after buying Sanoco’s convenience store and petrol station business for in 3.3 billion, ahead of its nearest rival, Canadian Elemental Couch-Tard.

However, on Friday, Rebecca Kelly Slater, the FTC’s chief executive officer, and Rohit Chopra, the Democratic FTC’s commissioner, said that despite regular ongoing investigations, the deal was closed and they were “shaken” by the announcement of the seven & i. And said they had “reason to believe this transaction was illegal”.

“Transactions in many local markets are either monopolized or monopolized or the number of competitors is reduced from three to two,” they said in a statement.

Although the unreliable regulator had already spent to investigate this “critical resource” transaction, it has not yet reached an agreement with the companies involved that will address its concerns, they said.

Slater and Chopra said, “The decision of the Seven and Marathon in this situation is very unusual, and we are deeply saddened by it.”

The deal for Speedway was later Previous discussion Seven and I and Marathon broke up due to disagreements over pricing. The company initially began paying 22 22 billion for Speedway’s operations but agreed to drop a 4.5 percent discount five months later.

Marathon said last year that the deal would generate about .5 1.5.5 billion in post-tax revenue, which would help pay off debts and repay shareholders’ funds.

Marathon reached the deal after pressure from activist investor Elliott Management, which in 1999 called for the company to break down to deal with “long-term skills” in the business. It had already announced plans to turn Speedway into a separate entity.

Seven & I and Marathon did not immediately respond to requests for comment on the statement.

Slater and Chopra said in their statement that the FTC would continue to investigate the transaction “to determine a suitable path for resolving competitive adversarial losses.” “The parties have closed the transaction at their own risk”.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *