Convenience store chain, 7-Eleven, has entered into a binding agreement with Mobil Oil Australia to acquire its retail fuels business, which will see the number of 7-Eleven stores jump from 400 to more than 650. The acquisition will position 7-Eleven as the market leader in convenience retailing and also make it the largest independent fuel retailer in Australia.

The sale involves 295 company-owned or leased service stations, mostly located in metropolitan areas of eastern Australia.

7-Eleven’s chief executive officer, Warren Wilmot, said This is not simply complementary to our business, it is our business. Similar acquisitions in the past have delivered significant per-store merchandise sales growth, demonstrating the strength of the brand’s consumer appeal. In addition, the acquired sites are well positioned with strong fuel and food store volume, bringing excellent synergies with 7-Eleven’s current operations.

He said that most of the Mobil sites will be converted by the end of 2011 after undergoing significant upgrades.

This is also great news for our existing franchisees, as it will bring supply chain efficiencies and greater buying and marketing power for 7-Eleven, Wilmot said. In the short term, very little will change for employees, as we recognise that both companies have significant employee talent we wish to harness.

Included in the acquisition are approximately 30 stores in South Australia, where 7-Eleven currently doesn’t operate. According to the company, the stores and assets will be transferred to the Peregrine Corporation which shares 7-Eleven’s approach to business.