Sunoco Continues Spending Spree With $9.1 Billion Parkland Acquisition
Sunoco Continues Spending Spree With $9.1 Billion Parkland Acquisition
By Julianne Geiger — May 05, 2025, 12:00 PM CDT- The Dallas-based fuel distributor announced Monday it will acquire Parkland Corporation.
- The move expands Sunoco’s footprint deep into Canada and the Caribbean.
- Sunoco is set to pay with cash and stock, including assumed debt.
Sunoco LP (NYSE: SUN) is bulking up again—this time north of the border. The Dallas-based fuel distributor announced Monday it will acquire Parkland Corporation (TSX: PKI) in a $9.1 billion cash-and-stock deal, including assumed debt. The move expands Sunoco’s footprint deep into Canada and the Caribbean, while consolidating its position in North American fuel supply and distribution.
As part of the deal, Sunoco will spin up a new Delaware-based entity, SUNCorp, whose units will trade in lockstep with Sunoco’s current units. Parkland shareholders will receive a mix of cash and SUNCorp equity, implying a 25% premium to recent trading prices. Shareholders can also elect all-cash or all-equity options, subject to proration.
The acquisition follows Sunoco’s recent spending spree, including its January 2024 acquisition of NuStar Energy—finalized in May last year. Together, the deals reflect a clear strategy: double down on infrastructure and scale, even as market volatility tests refined product margins.
Strategically, Sunoco is betting on $250 million in synergies by year three and expects the deal to be immediately accretive to cash flow. With a secured $2.65 billion bridge loan, the financing is in place. The boards of both companies have unanimously approved the transaction, which is expected to close in the second half of 2025 pending shareholder and regulatory signoff.
Sunoco will keep Parkland’s Canadian HQ in Calgary and maintain operations at the Burnaby refinery, which produces low-carbon fuels for western Canada. The company also pledged continued investment in Parkland’s transportation energy infrastructure.
If completed, the deal marks a significant cross-border consolidation play—putting thousands of gas stations, terminals, and logistical assets under one increasingly dominant umbrella.
By Julianne Geiger for Oilprice.com
More Top Reads From Oilprice.com