Sunoco to acquire Parkland for $9.1bn, offering cash and SUNCorp units to shareholders.
From Yahoo Finance: 2025-05-06 05:37:00
Sunoco is set to acquire Parkland Corporation in a $9.1bn deal, offering Parkland shareholders a mix of cash and SUNCorp units. Sunoco plans to ensure SUNCorp unitholders receive the same dividends as Sunoco unitholders for two years post-transaction. The deal is expected to close in the second half of 2025, pending regulatory approvals.
The acquisition is projected to be immediately accretive, with over 10% accretion to distributable cash flow and $250m in synergies by the third year. Parkland’s directors and officers have committed to voting in favor of the transaction. The combined company aims to become the largest independent fuel distributor in the Americas, with industry-leading scale and stability.
Sunoco intends to return to four times its long-term leverage target within 12-18 months post-acquisition. The partnership is expected to offer financial benefits, stability, and growth opportunities. Parkland’s Burnaby Refinery will continue to operate, producing low-carbon fuels. The transaction underscores Sunoco’s commitment to investing in Canada and expanding transportation energy infrastructure.
Read more at Yahoo Finance: Sunoco to acquire Parkland in $9.1bn deal