A Major Acquisition in the Energy Sector: Sunoco’s $9.1 Billion Takeover of Parkland Corp

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

The deal, announced on May 5, 2025, comes at a time when Parkland is navigating internal challenges. The company faces an attempt by Simpson Oil Ltd., its largest shareholder, to replace a majority of its board of directors. In response to these developments, Parkland has cancelled its annual meeting, signaling a period of strategic realignment.

Sunoco’s acquisition strategy involves forming a new publicly traded company named SUNCorp LLC. As part of the transaction, Sunoco is offering C$44 per share for Parkland, combining cash and SUNCorp stock. This move is expected to enhance Sunoco’s footprint in the Canadian market, leveraging Parkland’s extensive network of gas stations and its operations across retail, convenience, supply, commercial, and wholesale sectors.

The acquisition is not just a financial transaction but a strategic expansion for Sunoco, aiming to strengthen its position in the North American energy market. Parkland, listed on the Toronto Stock Exchange, has a market capitalization of 6.13 billion CAD, with a close price of 36.28 CAD as of May 1, 2025. The company’s financial metrics, including a price-to-earnings ratio of 49.18, reflect its robust market presence and potential for growth.

This takeover also highlights the dynamic nature of the energy sector, where strategic acquisitions can reshape market landscapes. As Parkland integrates into Sunoco’s operations, stakeholders will be keenly watching the synergies and efficiencies that emerge from this merger.

In summary, Sunoco’s acquisition of Parkland Corp. is a landmark deal that underscores the evolving dynamics of the energy industry, promising new opportunities and challenges for both companies involved.