Published: May 5, 2025 |

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Sunoco will buy Canada-based Parkland in a deal valued at about $9.1 billion, including debt, the U.S. fuel supplier said on Monday, in 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 percent stake, and supported by activist investor Engine Capital.

Simpson Oil did not immediately respond to a Reuters request for comment. Parkland shareholders will receive C$19.80 in cash and 0.295 Sunoco units for each Parkland share held.

Shares of Sunoco, which operates in wholesale fuel distribution and retail convenience, slipped 1 percent in premarket trading following the announcement.

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

Source: CNBC

Sunoco is a leading energy infrastructure and fuel distribution master limited partnership operating in over 40 U.S. states, Puerto Rico, Europe, and Mexico. The partnership’s midstream operations include an extensive network of approximately 14,000 miles of pipeline and more than 100 terminals. This critical infrastructure complements the partnership’s fuel distribution operations, which serve approximately 7,400 Sunoco and partner branded locations and additional independent dealers and commercial customers. SUN’s general partner is owned by Energy Transfer.

Parkland is a leading international fuel distributor, marketer, and convenience retailer with safe and reliable operations in twenty-six countries across the Americas. Its retail network meets the fuel, and convenience needs of everyday consumers. Their commercial operations provide businesses with fuel to operate, complete projects and better serve customers. In addition to meeting its customers’ needs for essential fuels, Parkland provides a range of choices to help them lower their environmental impact, including manufacturing and blending renewable fuels, ultra-fast EV charging, a variety of solutions for carbon credits and renewables, and solar power. With approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region, they have developed supply, distribution, and trading capabilities to accelerate growth and business performance.

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