Sunoco LP (“Sunoco”) and Parkland Corporation (“Parkland”) announced today that “they have entered into a definitive agreement whereby Sunoco will acquire all outstanding shares of Parkland in a cash and equity transaction valued at approximately USD $9.1 billion, including assumed debt.”

“This strategic combination is a compelling outcome for Parkland shareholders,” said Michael Jennings, executive chairman of Parkland. “The Board unanimously recommends the proposed transaction, recognizing Sunoco’s commitment to safeguarding Canadian jobs, retaining the Calgary head office and further investing in Canada. This partnership creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas.”

The deal is “a move the companies said would create the largest independent fuel distributor in the Americas. The deal follows Parkland's strategic review, initiated in March, following persistent pressure from Simpson Oil, Parkland’s largest shareholder with a nearly 20% stake, and supported by activist investor Engine Capital,” reported Reuters.

The deal is expected to close in the second half of 2025 and generate more than $250 million in run-rate synergies by the third year, Parkland said.

Sunoco will keep investing in Parkland’s Burnaby Refinery, which makes cleaner, low-carbon fuels, and run it for the long term to supply fuel to the Lower Mainland region in Canada, wrote Reuters.

In March, Parkland Corporation released its financial and operating results for the fourth quarter and year end 2024, and said its Board of Directors had “initiated a review of strategic alternatives to identify opportunities to maximize value for all shareholders.”

In September 2024, Parkland announced that it was initiating a process to divest its Florida-based retail and commercial businesses. Parkland’s Florida business contained approximately 100 retail locations, nine cardlock facilities and four bulk storage plants and warehouses.