US firm Sunoco agreed to buy Canadian fuel distributor and retailer Parkland in a deal valued at $9.1bn, the companies said Monday.
Sunoco, an energy infrastructure and fuel distribution company, will acquire all outstanding shares of Parkland in a cash and equity transaction.
This deal "creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas," said Michael Jennings, executive chairman of Parkland.
The transaction will further diversify Sunoco's portfolio and geographic footprint and increase cash flow generation for reinvestment and distribution growth, the companies said.
Parkland owns a 55,000 b/d refinery in Burnaby, British Columbia, which produces conventional oil products and has 4,000 b/d of co-processing capacity, meaning both petroleum and biogenic feedstocks are used.
Sunoco said it is committed to continue investment in the refinery which supplies fuel to southwestern BC, including the Vancouver area.
Parkland owns about 4,000 retail and commercial locations in Canada, the US and the Caribbean region.
Under the deal, Sunoco will keep a Canadian headquarters in Calgary and "significant employment levels" in Canada, the companies said.
The transaction is expected to close in the second half of the year.
Parkland has planned a special meeting of its shareholders on 24 June, to approve the transaction. The annual general meeting of Parkland shareholders, which was originally scheduled for 6 May has been cancelled.
Parkland in March said it was conducting a review of strategic alternatives including a possible sale of the company. The review was led by a special committee of the board of directors.
Parkland last year sold its Canadian commercial propane business to Avenir Energy for C$115mn.
