Sunoco Selling 1,108 Of Its Convenience Stores & Petrol Stations To 7-Eleven Inc. For $3.3 Billion

Texas-based Sunoco LP (NYSE:SUN) has agreed to sell 1,108 of its 1,350 convenience stores and petrol stations in Texas and other states in August to the U.S. unit of Seven & i Holdings Co. (7-Eleven Inc.) for about $3.3 billion as the Japanese retailer closes in on its goal to reach 10,000 North American outlets by 2019.

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The deal will be the biggest by 7-Eleven Inc., known for its "Slurpee" frozen beverage. Most recently, 7-Eleven Inc. acquired 79 stores in California and Wyoming from CST Brands Inc. (NYSE:CST) in July.

Seven & i runs general merchandise, department and specialty stores, but the bulk of its operating profit comes from convenience stores - or 86% of 364.6 billion yen (US$3.29 billion) in the year through February.Seven & I  has about 19,400 7-Eleven stores in Japan and 8,700 in the United States and Canada, including those run by franchisees.

In Japan, same-store sales in the year through February rose 1.8% at the 7-Eleven chain, but fell 4.2% at Seven & i's Ito-Yokado general merchandise stores.

A Japanese company which is now part of Seven & i opened a 7-Eleven store as a regional licensee in 1974. The then-new retail concept became so successful in Japan that the company later bought out the U.S. owner of the convenience store chain.