Sunoco LP 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% 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% 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.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)