Sunoco buying Parkland for $9 billion

Sunoco will buy embattled Parkland in a $9.1 billion consolidation of two of the biggest fueling and convenience store powers across the Americas, creating a network of more than 11,000 fueling stations.

"This strategic combination is a compelling outcome for Parkland shareholders," said Parkland executive chairman Michael Jennings in a statement. "This partnership creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas."

Dallas-based Sunoco, which is publicly traded but part of the Energy Transfer family, said the merger will add to its fuel distribution empire with the deal that includes $2.65 billion in cash. The $9.1 billion also counts assumed debt. Sunoco, which is structured as a master-limited partnership, will create a new Delaware LLC, SUNCorp., to hold the acquired Parkland shares for a two-year window, and maintain the Calgary headquarters.

However, Simpson, who holds about 20% of Parkland shares, is criticizing the Parkland board for rushing to make the Sunoco deal prior to the transition of new board directors.

"This eleventh-hour maneuver represents a new turn in the Board’s deplorable track record of governance and should come as no surprise to shareholders," Simpson Oil said in a statement, putting the Sunoco deal in doubt.

Calgary-based Parkland counts 4,000 retail and commercial locations across Canada, the U.S., and the Caribbean region, adding to Sunoco’s existing network of 7,400 Sunoco and partner-branded locations. Sunoco also owns 14,000 miles of products pipelines and more than 100 terminals. Parkland also owns the Burnaby Refinery in Canada. Parkland includes the Esso, Chevron, Ultramar, and Pioneer gas station brands in Canada.

Full story Sunoco buying Parkland for $9 billion to create largest retail fueling and convenience store giant in the Americas