Sunoco is selling the majority of its convenience stores to the operator of the 7-Eleven chain so it can focus on its fuel supply business. Fred Katayama reports.
Sunoco is selling the majority of its convenience stores to the operator of the 7-Eleven chain for about $3.3 billion. The deal involves 1,100 stores and gas stations primarily along the East Coast and Texas. Sunoco aims to shift away from convenience stores operating under brands such as APlus and Stripes to focus on its fuel supply business. Japan's 7&i Holdings, which runs the 7-Eleven chain, operates department stores and general merchandise stores as well. But sales are suffering at those big box retailers, so it is focusing on growing its convenience store network, which includes more than 19,000 in Japan and 8,700 in the U.S. and Canada. Peter Cardillo of First Standard Financial: SOUNDBITE: PETER CARDILLO, CHIEF MARKET ECONOMIST, FIRST STANDARD FINANCIAL, (ENGLISH) SAYING: "M&A has been quite strong this year. There was as time when we saw a bit of a slowdown, but over the past several weeks we've seen a pick up. I think that makes good thinking that there's a lot of hope out there that the economy is going to do well this year. Any time we have strong M&A, that's a good sign." Sunoco shares reversing some of their 11 percent loss this year, soaring at the market open.