Global wholesale fuel distributor and retail convenience store operator Sunoco agreed to purchase all outstanding shares of Parkland in a cash and equity transaction for approximately $9.1 billion.

Parkland shareholders will receive C$19.80 in cash plus 0.295 Sunoco units for each share they own.

MDM’s 1Q25 M&A Report (store link) 

The deal comes after Canada-based Parkland launched a strategic review in March amid ongoing pressure from its largest shareholder, Simpson Oil, which holds nearly 20%, and backing from activist investor Engine Capital.

“The board unanimously recommends the proposed transaction, recognizing Sunoco’s commitment to safeguarding Canadian jobs, retaining the Calgary head office and further investing in Canada,” Parkland Executive Chairman Michael Jennings said in a May 5 news release. “This partnership creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas.”

MDM’s SHIFT Conference Coming May 13-15 – Register Here 

The acquisition is Sunoco’s second major transaction in recent years, following its $7.3 billion purchase of NuStar Energy in 2024.

The Parkland deal is expected to close in the second half of the year and generate over $250 million in annual cost savings by year three. To fund the cash portion, Sunoco secured a $2.65 billion, 364-day bridge loan, a common short-term financing tool for large transactions.

MDM Case Study: Ferguson (Premium access here) 

Sunoco said the move will increase cash flow by more than 10% and help the combined company return to target debt levels within 12 to 18 months.

For more information regarding the acquisition, click here.