Sunoco (NYSE: SUN) has announced it will acquire Parkland Corporation (TSX: PKI) in a cash-and-equity deal worth US$9.1 billion, including debt—a bold move that consolidates Sunoco’s grip on the fuel supply chain across North America and the Caribbean.

The transaction will see Parkland shareholders receive $19.80 in cash and 0.295 SUN units per share, reflecting a 25% premium based on the seven-day volume-weighted average price as of May 2, 2025. The deal allows shareholders to elect an all-cash (C$44), all-stock, or mixed consideration option, subject to proration.

The deal follows months of strategic uncertainty at Parkland, triggered by pressure from its largest shareholder, Simpson Oil, and activist investor Engine Capital. That pressure resulted in a formal strategic review in March, culminating in this acquisition proposal.

Parkland’s board, advised by Goldman Sachs Canada and BofA Securities, unanimously approved the offer, calling it a “compelling outcome” for shareholders and highlighting Sunoco’s pledges to maintain the Calgary head office, preserve Canadian jobs, and invest in the Burnaby Refinery.

On Sunoco’s side, the logic is equally clear: $250 million in expected run-rate synergies by year three, 10%+ accretion to distributable cash flow per unit, and an expanded platform to accelerate growth across the US, Canada, and the Caribbean.

Shareholder and regulatory approvals remain with Parkland’s annual general meeting, originally scheduled for May 6, has been pushed to June 24 to coincide with the special meeting for the vote.

The transaction is currently expected to close in the second half of 2025.

Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.