Sunoco Expands Horizons with $9.1 Billion Canada’s Parkland Buy

According to Parkland, the merger would become the Americas’ biggest independent fuel distributor.

In an attempt to broaden its scope, Sunoco paid $9.1 billion to acquire Parkland in Canada, bringing with it a refinery on the west coast and a string of service stations.

The businesses announced on Monday that they had come to a final agreement that will provide Parkland shareholders a combination of shares and cash.

With its offer to keep investing in Canada, Sunoco has committed to a number of things, such as maintaining Parkland’s Canadian headquarters in Calgary, Alberta, and creating a sizable number of jobs in the nation.

In response to criticism from its largest shareholder, Parkland agreed in March to examine its existing business plan and consider options such as a partnership, asset divestiture, or company sale.

According to Chairman Michael Jennings, a strategic merger with Sunoco presents a strong prospect for Parkland shareholders and will establish the merged business as the biggest independent fuel distributor in the Americas. The board of Parkland, including Jennings, has unanimously recommended that shareholders approve the purchase.

As per the deal, Sunoco will establish a new publicly traded company called SUNCorp, which will own Sunoco shares equal to its parent company’s limited partnership units. It is proposed that Parkland shareholders receive 19.80 Canadian dollars, or $14.33, plus 0.295 SUNCorp units for each Parkland share. Alternatively, they can choose to receive C$44 in cash or 0.536 SUNCorp units for each Parkland share.

The total value of the cash and stock deal, including debt, is around $9.1 billion. Parkland’s stock closed at C$36.28 Friday night, down about 10% over the previous 12 months but up 12% so far in 2025. The business

During Parkland’s annual investor meeting on Tuesday, the family-run business Simpson Oil, which owns around 20% of the company, was putting Parkland to the test with its slate of director nominations. Simpson stated last week that it expected its nominees to control a majority of the seats on the board of the Calgary company and that it had the backing of most of Parkland’s shareholders.

Last month, Bob Espey, the longtime CEO of Parkland, announced his resignation in an attempt to appease Simpson, who had demanded a revision to the board and a change in the CEO.

At a vote scheduled for June 24, Parkland’s shareholders must approve Sunoco’s buyout offer. The annual shareholder meeting scheduled for Tuesday has been postponed to the same day as the vote.

According to Parkland’s Jennings, Sunoco will keep funding Parkland’s refinery in Burnaby, British Columbia, as well as the company’s initiatives to develop its transportation energy infrastructure in Canada, all while pledging to protect Canadian jobs. According to him, more funds will be available for investing in Canada, the Caribbean, and the United States thanks to the merged company’s increased free cash flow.

In Canada, the United States, and the Caribbean, Parkland operates a network of about 4,000 gas stations and retail stores. Operating in more than 40 U.S. states, Puerto Rico, Europe, and Mexico, Sunoco is a master limited partnership that manages more than 100 fuel terminals and around 14,000 miles of pipeline.

The agreement with Parkland will instantly increase distributable cash flow per unit and generate $250 million in recurring savings by the third year of the combination, according to Sunoco, which has obtained a $2.65 billion 364-day bridge term loan for the proposed cash consideration. Additionally, the partnership will enable it to expand more quickly and diversify its geographic reach and portfolio.

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