Sunoco LP Acquires Parkland in Landmark $9.1 Billion Deal

Sunoco LP has announced its acquisition of Canadian company Parkland for approximately $9.1 billion including Parkland's debt, making it the largest independent fuel distributor in the Americas. Parkland shareholders will receive cash and Sunoco units. The deal is expected to close in the second half, promising significant synergies.

Sunoco LP has struck a landmark deal to acquire Canada-based Parkland in a transaction valued at about $9.1 billion, including debt. This strategic acquisition positions Sunoco as the largest independent fuel distributor across the Americas.

The move comes after Parkland conducted a strategic review, prompted by pressure from its biggest shareholder, Simpson Oil, and supported by activist investor Engine Capital. Parkland shareholders will receive C$19.80 in cash and 0.295 units of Sunoco for each share they hold.

Following the announcement, Sunoco's shares dipped by 1% in premarket trading. The agreement anticipates closing in the second half of the year, with projections of more than $250 million in run-rate synergies by the third year. Sunoco also plans continued investment in Parkland's Burnaby Refinery, committed to producing low-carbon fuels for Canada's Lower Mainland region.

(With inputs from agencies.)