Latest news with #ParklandCorp
Bloomberg
4 days ago
- Business
- Bloomberg
Top Parkland Holder Backs Sunoco Deal, Urges Others to Adhere
The top shareholder in Parkland Corp. said it supports the Canadian fuel distributor's proposed takeover by Sunoco LP, describing the deal as a turning point for the company. Barbados-based investment firm Simpson Oil Ltd., which holds 19.8% of Parkland's outstanding common shares, said it will vote in favor of the transaction and urged other shareholders to do the same.
Toronto Star
4 days ago
- Business
- Toronto Star
Activist investor Engine Capital plans to vote against US$9.1B Parkland-Sunoco deal
CALGARY - A major shareholder in fuel refiner and retailer Parkland Corp. says it plans to vote against its planned takeover by U.S. heavyweight Sunoco LP. Engine Capital owns 2.5 per cent of Parkland's shares, making it one of the Calgary-based company's biggest investors.
CTV News
4 days ago
- Business
- CTV News
Activist investor Engine Capital plans to vote against US$9.1B Parkland-Sunoco deal
A Pioneer gas station is shown in Carleton Place, Ont., on Saturday, Nov. 8, 2008. THE CANADIAN PRESS/Sean Kilpatrick CALGARY — A major shareholder in fuel refiner and retailer Parkland Corp. says it plans to vote against its planned takeover by U.S. heavyweight Sunoco LP. Engine Capital owns 2.5 per cent of Parkland's shares, making it one of the Calgary-based company's biggest investors. In a letter to Parkland's board of directors, Engine's leadership argues the Sunoco deal was rushed, the price is too low and that there are likely better options available. A month ago, Parkland and Sunoco announced a friendly cash-and-stock takeover deal valued at US$9.1 billion including debt Shareholders are to vote on the transaction at a meeting set for June 24 in Calgary. Engine says it has nothing against Sunoco and would happy to become a long-term investor in that company — but only if its offer is rejigged to better reflect Parkland's value. This report by The Canadian Press was first published June 6, 2025. Lauren Krugel, The Canadian Press
CBC
13-05-2025
- Business
- CBC
Parkland-Sunoco deal comes amid fraught U.S.-Canada relations, resource nationalism
Ottawa is weighing the proposed takeover of Calgary-based Parkland Corp. by American fuel distributor Sunoco LP at a time of fraught Canada-U. S. relations and amped-up resource nationalism. The $9.1-billion US friendly deal announced last week is subject to a review under the Investment Canada Act, which considers whether it will be a net benefit to the country and unlikely to harm national security. Parkland sells fuel under the Ultramar, Chevron and Pioneer gas station brands in Canada and also owns a refinery in Burnaby, B.C. In March, Ottawa updated the national security guidelines under the Investment Canada Act to account for potential harms to Canada's economic security through enhanced integration between the Canadian company and a foreign economy. Late last week, the president of the union representing 150 workers at Parkland's Burnaby refinery said critical energy infrastructure should not be handed over to a foreign multinational in the middle of a trade war. Jennifer Quaid, who teaches corporate law at the University of Ottawa, says the timing of the bid could be unlucky for Parkland and Sunoco as heightened attention is being paid to U.S. President Donald Trump. The flurry of tariff and annexation threats coming from Trump have intensified calls for Canada to develop its own resources and build infrastructure allowing access to markets outside of the United States. "Rightly or wrongly, there will be more attention focused on it because it's an American acquisition in a sector that we are paying a lot of attention to right now in terms of Canadian capacity," Quaid said.
CBC
10-05-2025
- Business
- CBC
Questions raised over U.S. company's bid for B.C. fuel refinery
Calgary-based Parkland Corp. says if deal proceeds, buyer Sunoco will safeguard Canadian jobs Image | Parkland-Aviation-Fuel 20241210 Caption: U.S.-based Sunoco has a deal in place to buy Calgary's Parkland Corporation. Parkland owns a refinery in Burnaby, and given American tariffs and trade threats, some are questioning the sale. (Darryl Dyck/The Canadian Press) Open Image in New Tab The possibility of a Texas energy company buying a Burnaby, B.C., fuel refinery has workers and energy observers concerned, given Canada's trade fight with the United States. Sunoco, headquartered in Dallas, has offered $9.1 billion US for Calgary-based Parkland Corporation. Parkland owns a refinery in Burnaby, along with gas stations and a fuel distribution arm. Unifor, which represents about 150 workers at the Burnaby refinery, says it has serious concerns about the deal, since it would be akin to handing control of "critical energy infrastructure to a foreign multinational during a trade war. The union says the federal and provincial governments need to put binding commitments in place "to protect jobs and preserve the refinery's operations," since it produces about a third of the region's gasoline and jet fuel. "Obviously, if this were to disappear, the jobs would go, and the ability to supply the region with finished fuels would disappear as well," said Russ Day, president of Unifor Local 601, standing outside the plant gate. "That would put us in the hands of external refiners who may not have the same interest in this market." Parkland executive chairman Michael Jennings said in a statement that Sunoco has committed to safeguarding Canadian jobs and retaining the Calgary head office. Are tariffs lowering Parkland's price? Still, some who follow the energy business are asking questions about the proposal, especially in light of the discord over trade between Canada and the U.S. "I think that tariffs have the potential to reduce the value of Canadian companies," said Jotham Peters with Navius Research, which consults on climate and energy policy. "[Tariffs] add a lot of uncertainty in our markets and … perhaps make our companies a little bit easier to acquire. "I'm concerned about a U.S. company coming in and buying a Canadian company, in part because I don't actually know the extent to which tariffs are potentially reducing the valuation." Likewise, University of British Columbia research and post-doc fellow Philip Solimine expressed "surprise" that a deal like this is being considered with trade uncertainty afoot. "A purchase of this scale seems like it could be a potentially useful bargaining chip in trade negotiations," Solimine wrote in an email. "This is particularly true given the increased strategic importance of refineries to the Canadian economy." Federal review still required B.C. Energy and Climate Solutions Minister Adrian Dix said in a statement said his ministry was aware of the merger talks and that Parkland and Sunoco have an agreement to continue operations in Canada. "We value our relationship with Parkland, and they are a key player in B.C.'s economy and also contribute to the production of renewable fuels in our province. Our key priority is to keep the refinery operating," an email from Dix read. "We are planning on meeting with Parkland, Sunoco to discuss future plans later in May. We will also be meeting with Unifor to discuss their concerns." Since the deal involves a U.S. buyer, it is subject to approval under the Investment Canada Act, which reviews large-scale acquisitions of Canadian companies by foreign buyers. CBC asked the federal government for comment, but had not received a response by deadline. Parkland shareholders are set to vote on the deal on June 24.
