Dallas-based Sunoco LP will acquire Canada’s Parkland Corp. in a deal valued at $9.1 billion.
As part of the acquisition, Sunoco will form a new publicly traded company named SUNCorp LLC. The deal will see Sunoco absorb one of the largest owners of gas stations in Canada.
Sunoco is offering C$44 a share for the purchase, a 21% premium over Parkland’s May 2 closing price. The deal includes a combination of cash and SUNCorp shares.
Parkland operates in over two dozen countries in the Americas and has around 4,000 retail and commercial locations in Canada, the United States, and the Caribbean.
Parkland’s ability to continue operating independently has been in doubt in recent months. The fuel seller recently brought on Goldman Sachs Group Inc. and Bank of America Corp. to help with a strategic review.
Simpson Oil, Parkland’s largest shareholder, has been pressuring the energy company to make changes. Finally, in April, Parkland’s Chief Executive Officer Bob Espey said he would step down amid an ongoing proxy battle against Simpson.
If approved by Parkland shareholders and regulators, Sunoco’s acquisition is expected to close in the second half of the year.