Dive Brief:

• Sunoco LP has agreed to acquire Parkland Corp. for $9.1 billion, the companies announced on Monday.
• Parkland’s assets include its fuel and refinery business, as well as thousands of convenience retail sites across North America. In the U.S., Parkland has 645 c-stores and directly operates about 200 of them. The move represents a surprise return to retail for Sunoco, which sold most of its remaining c-store assets to 7-Eleven in 2024.
• The deal is a “compelling outcome” for Parkland’s shareholders, who are set to vote on the transaction June 24, Executive Chairman Michael Jennings said on Monday. If the deal passes, this would likely conclude Parkland’s chaotic battle with shareholder Simpson Oil, which has demanded change for years.

Dive Insight:

The sale, which the boards of directors from both companies unanimously approved, comes just a day before Parkland’s annual shareholder meeting, during which Parkland was expected to battle for its future. That meeting has now been cancelled, replaced with the June 24 vote. 

Simpson, Parkland’s largest shareholder, launched a takeover bid of the company’s board in early April after accusing the retailer of long-term underperformance since early 2023. Its proposed changes included adding nine new faces to Parkland’s board and replacing President and CEO Bob Espey.

As of Friday, Simpson claimed that over 60% of Parkland’s shares supported its goal. Canadian retail analyst Bruce Winder said in an interview with C-Store Dive that if Simpson won the shareholder vote, a sale of Parklands assets was the most likely outcome.

As part of the deal — expected to close in the second half of 2025 — Sunoco will form a new publicly traded company named SUNCorp, LLC, and will retain headquarters in Parkland’s home base of Calgary, Alberta.

Espey, who recently announced his resignation, called the deal a “significant milestone.”

“Sunoco shares our commitment to growth, customer service, operational excellence, and ongoing investment in Canada, making our combined business stronger and better positioned for sustained success,” Espey said.

Sunoco said on Monday that it was drawn to Parkland’s complementary fuel supply assets, notably its Burnaby refinery, which produces low-carbon fuels. Sunoco said it will continue to support Parkland’s plan to expand its Canadian transportation energy infrastructure, as well as future growth in the U.S., Canada and the Caribbean.

“This partnership creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas,” Jennings said.