Sunoco has acquired Canadian competitor Parkland
Sunoco has struck a deal to acquire Parkland, Canada’s largest owner of petrol stations. This will make Sunoco the leading independent fuel distributor in North America. The deal was valued at over US$9 billion.
Terms of the deal and disagreements among shareholders
According to official information, Parkland’s board of directors unanimously approved the terms of the deal with Sunoco. However, not everyone at the Canadian company supported this decision. One of the opponents of the deal is Simpson Oil, which owns the largest stake in Parkland (20%). Company representatives claim that this is an attempt by the Board of Directors to maintain control. Simpson previously filed a lawsuit demanding an injunction to prohibit the transaction and initiate the election of a new board of directors. Nevertheless, the court rejected the claim.
The purchase was also criticised by the investment company Engine Capital. Both shareholders cite business undervaluation as the main reason for their position. They believe that Parkland’s share price will increase. A deal done now would limit future income generation.
Sunoco first discussed the possibility of acquiring Parkland in 2023. At the time, the Canadian fuel supplier was not interested in the terms of the agreement. However, as early as 2025, the board adopted updated terms of the deal, including:
– an exchange of each Parkland share for CAD19.8 and 0.295 of the buyer’s securities;
– a transaction premium of 25% over the average price of the securities over one week;
– the total purchase price includes the company’s debt;
– the transaction also involves the transfer to Sunoco of a refinery.
The Burnaby refinery produces 55,000 barrels of fuel daily. This represents 25% of the region’s consumption.
Buyer’s plans
The board of directors claims that the deal will preserve the company’s financial stability. This is crucial in the face of the trade tensions that have arisen following the Trump administration’s introduction of new tariffs.
Parkland owns 4,000 retail and commercial fuel outlets. Its petrol stations, operating under various brands, are located in Canada, the Caribbean and the US. Sunoco, for its part, operates 7,400 outlets under its brand and in partnership with others. In addition to the US, it owns stations in Puerto Rico, Europe and Mexico.
Many experts believe that the deal is the best solution for Parkland. It will establish the largest fuel supplier in the region. Based on preliminary estimates, the new company will be able to manage around 15 billion gallons of products per year. Within three years, its revenue could reach US$250 million.
