Sunoco Acquires Parkland Corp. for $91B, 21% Premium

Sunoco, a leading energy company, has announced a landmark acquisition deal worth approximately 91 billion dollars, including debt, to acquire Parkland Corp., one of Canada's largest fuel station operators. This strategic move involves the creation of a new publicly listed company named suncorp LLC, which will facilitate the transaction. The deal values Parkland at 44 Canadian dollars per share, combining cash and SUNCorp stock, representing a 21% premium over the previous Friday's closing price.

Parkland, headquartered in Calgary, has been under scrutiny regarding its future as an independent entity. The company had previously engaged financial advisors for a strategic evaluation. The largest shareholder, Simpson Oil, has been exerting pressure for reforms, leading to the resignation of CEO Bob Espey last month amidst a proxy battle with Simpson.

The acquisition is subject to approval from Parkland's shareholders and regulatory authorities. If approved, the transaction is expected to be completed in the second half of 2025. This move by sunoco signifies a bold step in expanding its footprint in the Canadian fuel market, leveraging Parkland's extensive network and operational expertise. The integration of Parkland's assets into SUNCorp LLC is anticipated to create synergies and enhance Sunoco's market position, potentially leading to improved operational efficiencies and increased market share. The deal underscores Sunoco's commitment to growth and its strategic vision to dominate the fuel retail sector in North America.