U.S. company Sunoco signs deal to buy Parkland in $9.1 billion US agreement

The Canadian Press

· Posted: May 05, 2025 9:04 AM EDT | Last Updated: 5 minutes ago

U.S. vigor institution Sunoco LP has signed an statement to bargain Parkland Corp. successful a cash-and-stock woody valued astatine $9.1 cardinal US, including assumed debt.

The woody comes arsenic Calgary-based Parkland faces an effort by Simpson Oil Ltd., its largest shareholder, to regenerate a bulk of its committee of directors.

Parkland cancelled its yearly gathering acceptable for Tuesday and rescheduled it to June 24, erstwhile shareholders volition besides beryllium asked to o.k. the Sunoco deal.

Parkland enforcement president Michael Jennings said it is simply a compelling result for shareholders.

"The committee unanimously recommends the projected transaction, recognizing Sunoco's committedness to safeguarding Canadian jobs, retaining the Calgary caput office, and further investing successful Canada," Jennings said successful a statement.

"This concern creates important fiscal benefits for shareholders and would presumption the combined institution arsenic the largest autarkic substance distributor successful the Americas."

Parkland and Cayman Islands-based Simpson person been astatine likelihood implicit the substance refiner and retailer's show and governance for astir a year.

Simpson owns conscionable nether 20 per cent of Parkland's shares and wanted 9 of its directors added to Parkland's committee astatine a shareholder meeting, which has been postponed.

Under shareholder pressure, Parkland said successful March it would reappraisal options to boost its stock price, including a merchantability of the full company. Earlier this month, longtime Parkland CEO Bob Espey announced plans to measurement down earlier year-end.

As portion of the deal, Sunoco intends to signifier a caller publically traded institution named SUNCorp LLC that volition clasp constricted concern units of Sunoco that are economically equivalent to Sunoco's publically traded communal units.

Parkland shareholders volition person 0.295 SUNCorp units and $19.80 Cdn for each Parkland share. Parkland shareholders whitethorn besides elite to person $44 Cdn per Parkland stock successful currency oregon 0.536 SUNCorp units for each Parkland share, taxable to limits.

Parkland shares closed astatine $36.28 Cdn connected the Toronto Stock Exchange connected Friday.

In summation to shareholder and tribunal approvals, the woody is taxable to regulatory approvals, including support nether the Investment Canada Act. Sunoco has committed to support a Canadian office successful Calgary and important employment levels successful Canada.

It has besides committed to continuing to put successful Parkland's refinery successful Burnaby, B.C.