Sunoco to acquire Parkland in a $ 9.1 billion deal

Sunoco has announced a final agreement to obtain all the distinguished shares of Parkland Corporation in a $ 9.1 billion deal ($ 12.57 billion in Canadian), including supposed debt.

It is expected to be acquired immediately, with more than 10 % accumulating on the distribution cash flow per unit of shared and $ 250 million in synergy in the operating rate by the third year.

Under the terms of the agreement, Parkland shareholders will receive 0.295 SUNCORP units and $ 19.80 per Parkland share.

Parkland shareholders may also choose $ 44 per shares of Park Land in cash or 0.536 SUNCORP units per Parkland class, taking into account the exercise.

For two years after the transaction is closed, Sunoco will ensure that Suncorp owners get the same equivalent profits with Sunoco Unithold.

The transaction will be implemented as part of the arrangement plan under the Commercial Companies Law (Alberta) and will require approval by 66/3 % of the votes made by Parkland shareholders.

Park Land managers and senior officers, who carry 0.7 % of the shares, have committed to vote in favor of the deal.

“This strategic mix is ​​a convincing result of Parkland shareholders. The Board of Directors unanimously recommends the proposed treatment, while recognizing Sunoco’s commitment to protect Canadian jobs, maintaining the main office Calgary and increasing investment in Canada,” said Michael Jennings, CEO of Parkland.

“This partnership creates great financial advantages for shareholders and will put the joint company as the largest independent fuel distributor in the Americas.”

The deal includes convincing financial benefits, volume and stability in the industry, and the growth of hasty accumulation, according to Parkland.

Sunoco expects that it will return to four times, whose goal is to luxury in the long run within 12-18 months after the acquisition is closed.

The joint company will benefit from supplementary assets, allowing fuel supplies that have been called up and increased diversification of Sunoco wallet and geographical footprint.

“This deal provides an immediate value to shareholders, including an attractive allowance of 25 %,” said President and CEO of Parkland Bob Espey.

“Sunoco shares our commitment to growth, customer service, operating excellence and continuous investment in Canada, making our joint business stronger and better in a constant position.”

Sunoco plans to continue investing in the Burnaby refinery, known as the production of low -carbon fuel, which will continue to operate and supply fuel inside the lower main mainland.