Parkland Corp. and Sunoco LP Announce $9.1 Billion Acquisition Deal

In a significant development in the energy sector, U.S. energy company Sunoco LP has agreed to acquire Canadian fuel distributor Parkland Corp. in a cash-and-stock deal valued at US$9.1 billion, including assumed debt. This transaction marks a major shift for Parkland, a prominent supplier and marketer of fuel and petroleum products, as well as a leading convenience store operator based in Calgary, Canada.

The deal, announced on May 5, 2025, comes at a pivotal moment for Parkland, which has been facing internal challenges. Simpson Oil Ltd., Parkland’s largest shareholder, has been actively pushing for a boardroom overhaul. This shareholder activism has led to a delay in Parkland’s annual general meeting (AGM), a move that has been condemned by Simpson Oil as a tactic by the current board to cling to control.

Despite these internal tensions, the acquisition by Sunoco LP is set to proceed. The deal involves the formation of a new publicly traded company named SUNCorp LLC. This strategic move is expected to enhance Sunoco’s footprint in the Canadian market, leveraging Parkland’s extensive network of gas stations and its operations in retail, convenience, supply, commercial, and wholesale businesses globally.

Financially, Parkland Corp. has shown resilience, with its share price closing at CAD 36.28 on May 1, 2025. The company’s market capitalization stands at approximately CAD 6.13 billion. Over the past year, Parkland’s stock has fluctuated between a 52-week high of CAD 40.97 and a low of CAD 30.09. The price-to-earnings ratio is currently 49.18, reflecting investor sentiment and market conditions.

The acquisition is expected to be finalized in the coming months, subject to regulatory approvals and other customary closing conditions. This deal underscores the dynamic nature of the energy sector and highlights the strategic maneuvers companies are undertaking to strengthen their market positions.

As Parkland prepares to present its quarterly financial results on May 5, 2025, the market will be closely watching for any updates on the acquisition’s impact on its financial performance and strategic direction. Analysts had anticipated a profit of 0.378 CAD per share for the latest quarter, a significant turnaround from the loss of 0.030 CAD per share reported in the same period the previous year.

In summary, the acquisition of Parkland Corp. by Sunoco LP represents a landmark deal in the energy sector, promising to reshape the competitive landscape in Canada and beyond. Stakeholders and market observers will be keenly observing the developments as the transaction progresses.