Sunoco is buying the Canada service station and the Parkland convenience store chain in an effective and active agreement valued at approximately $ 9.1 billion, expanding its footprint north of the border.
Parkland has approximately 4,000 locations in Canada, the United States and the Caribbean. Sunoco has gas store locations and convenience in more than 40 states, Puerto Rico, Europe and Mexico.
Parkland Corp. shareholders will receive 0.295 Suncorp units and $ 19,80 Canadian ($ 14.34) for each Parkland action they possess. There is also an option for Parkland shareholders to choose to receive $ 44.00 Canadian ($ 31.86) for participation in the park in cash or 0.536 Suncorp units for each action.
The agreement also includes debt assumption.
Parkland announced in March that its Board was looking for strategic options for the company. It was at that time that conversations with Sunoco intensified significantly, Parkland said.
Parkland will keep its headquarters in Calgary. Sunoco will also continue to invest in the Parkland Burnaby refinery, which produces low carbon fuels.
The agreement is expected to close during the second half of the year. It is subject to the approvals of shareholders and courts. The transaction is also subject to certain regulatory approvals, including approval under the investment law in Canada and the approval of the Suncorp shares that will be issued under the transaction in the New York Stock Exchange.
Parkland will hold a special shareholders meeting on June 24 to vote on the transaction.
If the agreement is not closed, Parkland would have to pay a rupture rate of $ 275 million, under certain circumstances.
Sunoco LP’s shares, Baed in Dallas, fell more than 2% on Monday.
