In a jumbo deal that could set a standard for major M&A in H2 of 2020, 7-Eleven is acquiring fellow convenience store behemoth Speedway from Marathon Petroleum for $21 billion in cash.

This is a significant addition to 7-Eleven’s portfolio, adding 3,900 new stores and gas stations to 7-Eleven’s current total of 9,800 – a 150% increase in roadside assets. It is the largest acquisition in 7-Eleven’s 93-year history. Indeed, after Aon’s $30 billion purchase of Willis Towers Watson (which we covered here), it is the second-largest of 2020 so far.

The acquisition will strengthen 7-Eleven’s presence particularly in the Midwest and on the East Coast; Speedway stores and gas stations are currently located across 35 states, but there is little overlap between the two brands. 7-Eleven, which is hoping for synergies of over $500 million by the three-year mark, will be present in 47 of the US’s 50 most populated metropolitan areas.

Marathon Petroleum will continue to sell consumables via its convenience stores SuperAmerica, am/pm and Giant. Its move comes after activist investor Elliott Management pressured it into spinning off Speedways. Meanwhile, 7-Eleven’s owner, Seven & i Holdings, is Japan’s largest convenience store conglomerate; the transaction is a win for the Japanese giant, which is keen to expand out of a contracting domestic market.

Legal advisor to 7-Eleven: Akin Gump Strauss Hauer & Feld

Financial advisor to 7-Eleven: Nomura Securities International; Credit Suisse

Legal advisor to Marathon Petroleum: Wachtell, Lipton, Rosen & Katz

Financial advisor to Marathon Petroleum: Barclays