Brookfield also entered into an agreement with Imperial Oil Ltd. to rename the 213 stations using the Mobil fuel brand, marking the introduction of the brand into Canada, the companies said in a statement Wednesday. Imperial is the Canadian unit of Exxon Mobil Corp.
“Our investment in Loblaw’s leading portfolio of gas stations presents an opportunity to own a business with significant scale, strong customer loyalty, and compelling opportunities for further growth,” said Cyrus Madon, Chief Executive Officer of Brookfield Business Partners.
Gas stations have proven a popular target in Canada in recent years.
Parkland Fuel Corp. said Tuesday it had agreed to acquire a Canadian refinery and gas station business from Chevron Corp. for C$1.46 billion, which included 129 Chevron-branded retail services stations primarily in Vancouver.
Last March, Imperial Oil sold its chain of 497 company-owned Esso retail stations for C$2.8 billion to a group of buyers, including the Alimentation Couche-Tard Inc., 7-Eleven Canada Inc., Parkland and others.
Brookfield is buying stations adjacent to grocery stores operated by Toronto-based Loblaw, one of Canada’s biggest food store chains. Loblaw said it would use the proceeds for general corporate purposes, and that customers would be able to continue to use their PC Plus loyalty program at the stations.
The transaction, which is subject to standard approvals, is expected to close in the third quarter.
RBC Capital Markets acted as financial adviser to Loblaw. Scotiabank is acting as financial adviser to Brookfield Business Partners.