04:42 PM EDT, 09/17/2024 (MT Newswires) -- Arko ( ARKO ) plans to sell its convenience store operations in a deal potentially valued at about $2 billion as a shift away from expansion due to slowing sales, Reuters reported Tuesday, citing sources.

The company is working with Citigroup to divest the business of around 1,500 store it operates, focusing instead on its fuel distribution business, Reuters said, citing people familiar with the matter.

Potential buyers include other convenience store operators and private equity firms, who have already submitted initial bids, according to the report. However, a final deal is not yet assured.

Arko ( ARKO ) hopes to achieve a higher valuation as a standalone fuel distributor, serving over 1,800 independent dealer sites and around 300 unmanned fleet fueling locations, the report said.

Both Arko ( ARKO ) and Citigroup declined Reuters' requests.

Neither Arko ( ARKO ) nor Citigroup immediately responded to comment requests by MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)