Blog Exposure - US FTC Suggests Divestment of Certain Stores to Complete Previously Announced Acquisition of Sunoco's Stores by Parent of 7-Eleven
LONDON, UK / ACCESSWIRE / January 23, 2018 / Active-Investors.com has just released a free research report on Sunoco L.P. (NYSE: SUN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SUN as the Company's latest news hit the wire. Seven & i Holdings Co. Ltd, the parent Company of convenience retail store chain 7‑Eleven, had agreed to the US Federal Trade Commission's (FTC) January 19, 2018, suggestion to divest certain stores in US to complete the previously announced acquisition of Sunoco's stores. In April 2017, Seven & i had announced that it would acquire approximately 1,110 convenience and fuel retail stores of Sunoco through its US subsidiary 7-Eleven, Inc. in a deal valued over $3.3 billion. Register today and get access to over 1,000 Free Research Reports by joining our site below:
www.active-investors.com/registration-sg
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sunoco most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=SUN
The FTC's Suggestion
On January 19, 2018, the FTC disclosed that Seven & i, the parent company of 7-Eleven, has agreed to certain conditions set forth by the FTC before approving the proposed acquisition of Sunoco's convenience and fuel retail stores by its US subsidiary 7-Eleven.
The FTC had raised antitrust concerns regarding the deal and felt that the acquisition of Sunoco's stores by 7-Eleven would negatively impact competition in 76 local markets across 20 metropolitan areas. FTC's contention was that most fuel retail outlets compete based on price of fuel, convenience store format, product offerings, and location. It observed that consumers in these geographic markets typically choose the nearest retail fuel outlets located along their planned routes. The deal would lead to complete monopoly in 18 markets, the number of competitors would reduce from three to two in 39 markets and in 19 markets the number of competitors would reduce from four to three. In this situation, either 7-Eleven could easily raise prices unilaterally or the rest of the players could raise prices unilaterally by synchronizing their actions.
The FTC has suggested a remedy to overcome this problem. It has suggested that 7-Eleven sell 26 retail fuel outlets to Sunoco while Sunoco should continue to own 33 fuel outlets that it planned to sell to 7-Eleven as part of the acquisition deal. Both Companies have agreed to FTC's suggestions. Accordingly, Sunoco plans to convert all the 59 stores in question into commission agent sites and will have full control over the fuel pricing and supply at these locations. The FTC plans to appoint a trustee to monitor the implementation of the suggestions and other terms put forth by the FTC.
The FTC's suggestion paves way for completion of the 7‑Eleven-Sunoco Deal. The FTC will give its final verdict on the matter after February 20, 2018.
The 7-Eleven-Sunoco Deal
The Seven & i's announced the proposed acquisition of Sunoco's convenience and fuel retail stores through its subsidiary 7-Eleven in April 2017. As per the terms of the deal 7-Eleven would acquire approximately 1,110 stores located across 19 geographic regions in East Coast and in Texas. The deal valued approximately $3.3 billion included fuel, merchandise, and inventories at these stores. As part of the deal, Sunoco also agreed to supply approximately 2.2 billion gallons of fuel annually for a 15-year period. The supply of fuel was covered under a separate fuel supply agreement between Sunoco and a 7-Eleven subsidiary. The deal is expected to expand 7-Eleven's existing network, strengthen its presence in Texas and Eastern US states improve its profitability. The deal was part of Seven & i Group's Medium-Term Management Plan which aimed for $5,000 in average daily merchandise sales per store and 10,000 operational stores by fiscal year ending on February 29, 2020. The deal was expected to close in Q4 2017 subject to receiving the requisite approvals and closing conditions.
About Seven & i Holdings Co., Ltd
Seven & i is a Tokyo, Japan-based comprehensive retail group that through its Group of companies manages a globally unrivalled, diverse range of business categories, including convenience stores, superstores, department stores, specialty stores, banking, and Internet business. Its popular brands include Seven-Eleven, Ito-Yokado, Sogo, SEIBU, LOFT, Denny's, and Seven & i Group stores. The Group has over 63,000 stores in more than 18 countries across the globe. This included over 11,000 7-Eleven stores across US, Canada, and Mexico.
About Sunoco L.P.
Dallas, Texas-based Sunoco is a master limited partnership that operates one of the leading wholesale fuel distribution and retail marketing platforms in US. It operates 1,346 convenience stores and retail fuel sites and distributes motor fuel to 7,898 convenience stores, independent dealers, commercial customers, and distributors located in 30 states. Sunoco is also the world's largest manufacturer and marketer of racing fuels as well as the official fuel of NASCAR. Energy Transfer Equity, L.P. (NYSE:ETE) is the parent company and owns Sunoco's general partner and all of Sunoco's incentive distribution rights.
Stock Performance Snapshot
January 22, 2018 - At Monday's closing bell, Sunoco's stock climbed 2.39%, ending the trading session at $32.53.
Volume traded for the day: 418.16 thousand shares.
Stock performance in the last month – up 14.87%; previous three-month period – up 5.62%; past twelve-month period – up 21.84%; and year-to-date - up 14.54%
After yesterday's close, Sunoco's market cap was at $3.24 billion.
The stock has a dividend yield of 10.14%.
The stock is part of the Basic Materials sector, categorized under the Oil & Gas Refining & Marketing industry. This sector was up 1.2% at the end of the session.
Active-Investors:
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visithttp://active-investors.com/legal-disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active-Investors
