Mobil Oil Australia Pty Ltd has signed an agreement with 7-Eleven Australia for the sale of its retail fuels business, comprising 295 company-owned or leased stations that are primarily located in metropolitan areas in east Australia.

7-Eleven said in a statement that the deal created a merged entity with projected sales or more than $2.84 billion serving more than 160 million transactions each year.

The sale covers Strasburger Enterprise Pty Ltd that operates Mobil's metropolitan retail service station network in Australia.

7-Eleven chairman Russell Withers said the acquisition would increase its stores from 400 to more than 650. The deal also included about 30 stores in South Australia, where 7-Eleven does not currently operate.

Under the agreement with 7-Eleven, SEP is being sold as a going concern and the employment of those directly employed by SEP will continue through the change in ownership.

SEP has over 1700 employees, most of whom work in the 295 service stations.

Completion of the sale is expected to take several months.

7-Eleven chief executive Warren Wilmot said most of the Mobil stores would be converted by the end of 2011, with sites being "significantly upgraded".

In May 2009, Mobil announced the sale of its Australian retail fuel business to Caltex but both parties had agreed to terminate the sale agreements as the Australian Competition and Consumer Commission (ACCC) would not grant clearance of the proposed acquisition.

7-Eleven said the sale agreement with Mobil was not subject to ACCC clearance.