News Summary
Dallas-based Sunoco LP has announced its agreement to acquire Canadian gas station operator Parkland Corp for approximately $9.1 billion, including debt. This acquisition will transform Sunoco into the largest independent fuel distributor in the Americas, promising Parkland shareholders a C$44 per share. The deal is expected to close in the second half of 2025, pending regulatory approvals. Shareholders can choose their compensation method, and Sunoco commits to maintaining Canadian jobs post-acquisition as they navigate this significant corporate change.
Dallas – In a significant move within the fuel distribution sector, Dallas-based Sunoco LP has announced its agreement to acquire Canadian gas station operator Parkland Corp. for approximately $9.1 billion, including debt. This acquisition is set to transform Sunoco into the largest independent fuel distributor in the Americas.
The acquisition deal, which comes amid leadership changes and shareholder unrest within Parkland, promises its shareholders C$44 per share (roughly $32.60 USD), marking a 21% premium over the company’s closing stock price last Friday. The payment structure involves a combination of cash and stock from a newly formed entity called SUNCorp LLC.
Parkland, headquartered in Calgary, operates around 4,000 gas station locations across Canada and is under pressure from its largest stakeholder, Simpson Oil, which previously instigated a proxy battle resulting in CEO Bob Espey‘s recent resignation. Over 60% of Parkland’s shareholders sided with Simpson’s proposals, pushing the company to reassess its leadership and strategic direction.
The timeline for the transaction indicates that it is expected to close in the second half of 2025. However, this is contingent upon receiving necessary approvals from both Parkland’s shareholders and regulatory bodies. A special shareholder meeting is planned for June 24, 2025, where a two-thirds majority vote will be required for the deal to proceed.
The agreement includes specific terms that permit Parkland shareholders to choose their preferred method of compensation, which encompasses options for all cash, all stock, or a mix of both. Notably, shareholders will not receive more than C$19.80 in cash or 0.295 SUNCorp units for each Parkland share.
Beyond financial considerations, Sunoco has outlined its commitment to preserving the independence of Parkland’s Alberta head office and maintaining Canadian jobs post-acquisition. This reassurance comes as the company prepares for what could be a transformative period for both organizations.
Over the past five years, Parkland’s shares have seen a 16% increase, although this performance has lagged behind that of rivals such as Alimentation Couche-Tard and the S&P/TSX Composite Index. The acquisition represents a strategic opportunity for Sunoco to enhance its position in the competitive fuel distribution market, which is increasingly appealing to investors given the heightened demand for fuel supply amid fluctuating market dynamics.
In the wake of this announcement, both Parkland and Sunoco have enlisted various financial and legal advisors for the negotiation process. Parkland has retained the services of Goldman Sachs and Bank of America, while Sunoco has engaged Barclays and RBC Capital Markets to facilitate the transaction.
As the acquisition progresses, observers will await details regarding regulatory assessments under the Investment Canada Act, which will inevitably influence the future landscape of fuel distribution in North America.
This complex backdrop unfolds as Sunoco navigates the integration of Parkland’s operations and significant corporate changes, highlighting the challenges and opportunities that lie ahead for both companies.
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Additional Resources
- Reuters
- PR Newswire
- Oil Price
- Bloomberg
- Fortune
- Wikipedia: Sunoco
- Google Search: Parkland Corporation
- Google Scholar: Sunoco Parkland acquisition
- Encyclopedia Britannica: Fuel Distribution
- Google News: Sunoco Parkland deal
Author: STAFF HERE DALLAS WRITER
DALLAS STAFF WRITER The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
