Dallas-based Sunoco LP agreed to acquire Parkland Corp., one of the largest owners of gas stations in Canada, for about $9.1 billion including debt.
As part of the deal, Sunoco will form a new publicly traded company named SUNCorp LLC, the company said Monday in a statement.
Sunoco is offering $44 a share Canadian for the Calgary-based company through a combination of cash and SUNCorp stock, a 21% premium to Friday’s closing price.
Parkland’s future as an independent company has been in question for months after the company hired Goldman Sachs Group Inc. and Bank of America Corp. as financial advisers for a strategic review. It has been under pressure from its largest shareholder, Simpson Oil, to make changes, and last month Chief Executive Officer Bob Espey announced he would step aside as the company fought a proxy battle against Simpson.
Still, that was not enough to mollify Parkland investors: Simpson said on Friday that more than 60% of shares had been voted in favor of its proposed slate of directors, and that it expected to take control of the board of this week.
The companies expect the deal to close in the second half of 2025 if it’s approved by Parkland shareholders and regulators. Parkland has about 4,000 locations, and it’s also in the refining business.
Parkland shares have gone up about 16% over the past five years, dramatically underperforming rival Alimentation Couche-Tard Inc. and the broader S&P/TSX Composite Index.
– Simon Casey for Bloomberg