On Thursday, Texas-based company Sunoco LP (NYSE: SUN) announced that it would sell 1,110 convenience stores and gas stations to Japan’s Seven & i Holdings Co., Ltd. in a $3.3 billion deal. After the announcement, shares of Sunoco rose 24% and reached the biggest intraday percentage increase in three years.
Sunoco’s move responded to its current shifts to focus on fuel supply business, and it hopes to use the proceeds from the sale to repay debt of around $4.51 billion by December. In the deal, Sunoco promised that they would supply around 2.2 billion gallons of fuel per year for 15 years to 7-Eleven convenience stores.
For Seven & i Holdings, the deal with Sunoco would be the biggest one by 7-Eleven Inc, which is its U.S. unit. Currently, Seven & i Holdings owns around 19,400 7-Eleven stores in Japan and 8,700 in the United States and Canada, and it has been aggressively expending in both Japan and the United States. The company gets most of its operation profit from its convenience stores, but it also has business in general merchandise, department and speciality stores.
“The U.S. convenience store market has growth momentum. We see opportunities there,” said Ryuichi Isaka, the President of Seven & i.