Latest news with #ParklandCorp.
Toronto Star
13-05-2025
- Business
- Toronto Star
Parkland-Sunoco deal comes amid fraught U.S.-Canada relations, resource nationalism
CALGARY - 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 US$9.1-billion friendly deal announced last week is subject to a review under the Investment Canada Act, which considers whether foreign investments would be a net benefit to the country or cause potential harm to national security.
Global News
13-05-2025
- Business
- Global News
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 US$9.1-billion 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 any potential harm to national security. 'The timing of this acquisition, even though Parkland was soliciting offers, may be unlucky for them in that there will be, rightly or wrongly, more attention focused on it,' said Jennifer Quaid, who teaches corporate law at the University of Ottawa. 'It's an American acquisition in a sector that we are paying a lot of attention to right now.' View image in full screen A boat travels past the Parkland Burnaby Refinery on Burrard Inlet at sunset in Burnaby, B.C., on Saturday, April 17, 2021. THE CANADIAN PRESS/Darryl Dyck 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. Story continues below advertisement Parkland sells fuel under the Ultramar, Chevron and Pioneer gas station brands in Canada and also owns a refinery in Burnaby, B.C. View image in full screen The dowtown headquarters of Calgary-based Parkland Corp., that American fuel distributor Sunoco LP wants to acquire in a friendly takeover bid of $9.1 billion US. Global News Ottawa recently announced updated national security guidelines under the Investment Canada Act to account for potential harms to Canada's economic security. The government said it will consider the size of the Canadian business, its place in the innovation ecosystem and the impact on Canadian supply chains. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'As a result of a rapidly shifting trade environment, some Canadian businesses could see their valuations decline, making them susceptible to opportunistic or predatory investment behaviour by non-Canadians,' François-Philippe Champagne, then the minister of industry, wrote on X on March 5. Champagne was sworn in as finance minister under the newly elected Liberal government on Tuesday, while Mélanie Joly is now in charge of the ministry overseeing the Investment Canada Act review. Story continues below advertisement The same day Ottawa announced the new Investment Canada Act guidelines, Parkland, under pressure from investors displeased with its recent performance, announced it would review options to boost shareholder returns, including putting itself up for sale. Parkland shareholders are to vote on the Sunoco takeover, which comes with a 25 per cent premium, on June 24. Parkland said Sunoco has committed to safeguarding Canadian jobs, retaining its Calgary head office and investing in Canada. 'Oil and gas arguably has always been important, but we haven't been as preoccupied with oil and gas integration with the U.S. as we are maybe now. And so is some of that going to trickle into this analysis?' said Quaid. View image in full screen Dallas, Tx based Sunoco, which calls itself 'North America's largest independent fuel distributor' has offered $9.1 billion in a friendly takeover attempt of Calgary based Parkland Corp. AP Photo/Julio Cortez, File Late last week, the union representing 150 workers at Parkland's refinery in Burnaby, called on the federal and B.C. governments to secure binding commitments from Sunoco. Story continues below advertisement 'This is not the time to hand over control of critical energy infrastructure to a foreign multinational, especially in the middle of a trade war,' said Unifor national president Lana Payne. 'Unifor is sounding the alarm because energy security is national security, and we cannot afford to gamble with it.' The refinery supplies nearly one-third of the region's domestically supplied gasoline and jet fuel. 'The refinery is essential for the region's fuel supply and provides good union jobs,' said Unifor western regional director Gavin McGarrigle. 'British Columbians deserve solid, enforceable commitments that this refinery will be sustained through continued investment.'
Toronto Star
05-05-2025
- Business
- Toronto Star
Dissident to fight board vote delay in court after Parkland, Sunoco ink US$9.1B deal
CALGARY - Parkland Corp.'s biggest shareholder is going to court after the Calgary company announced a US$9.1-billion takeover by Sunoco LP and delayed a meeting where it was to face down investors pushing for a boardroom overhaul. A showdown had been set to take place in Calgary on Tuesday, with shareholders voting on competing director nominee slates put forward by Parkland's management and by Simpson Oil, which owns just under 20 per cent of the Canadian fuel retailer and refiner's shares.
Yahoo
16-04-2025
- Business
- Yahoo
Parkland CEO to step down in bid to diffuse conflict with activist shareholder
Parkland Corp.'s long-serving chief executive Bob Espey says he will step down in a bid to resolve the embattled fuel retailer's troubles with activist shareholders. The announcement comes as the bitter dispute between Parkland and its largest shareholder, Simpson Oil Ltd., threatened to come to a head at the Calgary-based company's upcoming annual general meeting on May 6, with Simpson calling for Espey's removal and for a whole new slate of directors to be installed. 'Over the past few months, it became clear that stepping down and announcing my departure may help bring resolution to the situation with Simpson Oil Ltd. and benefit all shareholders,' Espey said in a press release on Wednesday announcing plans for his departure and Parkland chair Michael Jennings's appointment as executive chair effective immediately. 'I remain deeply committed to Parkland and will support a smooth transition to new leadership. I look forward to working closely with Michael in his new role as executive chair.' Espey will stay on until a new CEO can be appointed, the company completes its previously announced strategic review or Dec. 31, whichever occurs first, the company said. His 15-year tenure at Parkland took the company from a few hundred gas stations in Canada to an international fuel distributor and refiner with 4,000 locations across North America and the Caribbean under brands such as Esso, Chevron, On the Run, Ultramar, Pioneer and Fas Gas Plus. 'Bob has led Parkland through a period of exponential growth, transforming the company from a small regional fuel retailer into one of Canada's leading fuel and convenience retailers with international operations in 26 countries,' Jennings said in a statement. 'We thank him for his unwavering commitment and dedication.' But in recent months, Espey and Parkland's board have come under intense pressure from activist shareholders Simpson and U.S. hedge fund Engine Capital LP, which have accused the company of mismanagement and underperformance. Bowing to activist pressure last month, Parkland launched a strategic review of the company's assets and options, including the potential sale of the company, and appointed new directors to the board. The appointments were dismissed by Simpson as 'tinkering' that has not addressed the root of the company's problems. Parkland's rocky history with its largest shareholder began in 2019 when it purchased a Caribbean convenience and fuel marketing company that was a subsidiary of the Cayman Islands-based Simpson Oil. The relationship appeared to take a turn in November 2022 when Simpson, which owns nearly 20 per cent of Parkland's shares, met with Parkland's management to discuss the company's share price returns, financial performance and 'strategic missteps.' The relationship soured further when Simpson took Parkland to court last year in a lawsuit over shareholder rights that resulted in the Ontario Superior Court of Justice siding with the activist investor. In a preview of its first-quarter earnings on Wednesday, Parkland said it is forecasting adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $375 million, and noted a write-down against its earnings of around $55 million related to its decision to wind down its Californian compliance market position. Parkland under pressure again from U.S. activist hedge fund Parkland targeted for shakeup by U.S. activist hedge fund The company said it expects full-year EBITDA to be toward the lower end of its previously announced range of $1.8 billion to $2.1 billion in 2025, based on current market conditions. • Email: mpotkins@
CBC
18-03-2025
- Business
- CBC
Parkland names two new directors as activist investor demands board shakeup
Parkland Corp. has named two new independent directors as an activist investor calls for an overhaul of its board. The Calgary-based fuel refiner and retailer, which is considering putting itself up for sale, has named Felipe Bayon and Sue Gove to its board of directors, effective Tuesday. With the latest additions, Parkland said it has added six independent directors to its board over the past two years. Bayon is a former chief executive of Ecopetrol S.A., Colombia's largest integrated energy company, while Gove is a member of the board at auto parts company LKQ Corp. and a former chief executive of Bed Bath & Beyond. "Felipe and Sue are accomplished executives with expertise in industries and sectors that align with Parkland's business," board chair Michael Jennings said in a news release. "Felipe's deep energy industry experience in Parkland's broader international region combined with Sue's extensive retail experience and governance expertise, will be invaluable as the company explores all options to maximize value for all shareholders." Parkland announced earlier this month that it would formally review ways to boost shareholder returns, including an all-out sale of the company, a merger, or asset sales and purchases. It was a move long pushed by Engine Capital LP, the New York activist hedge fund that owns 2.5 per cent of Parkland's shares, and Simpson Oil, the Cayman Islands-based firm that owns 20 per cent of Parkland. Engine said on Monday that it wants to see a "comprehensive reconstitution" of the Parkland board. "At this point, it is clear that the board has failed in its core responsibility to act in the best interests of shareholders and therefore cannot be trusted to oversee the strategic review," it said in a news release. Parkland said an invitation remains open to Simpson to rejoin its board and take part in a special committee reviewing strategic alternatives. Simpson directors had resigned from the board amid a governance dispute. Simpson sued Parkland last year to overturn restrictions preventing it from voting against board recommendations and soliciting or making its own bid for the company. The Ontario Superior Court of Justice ruled in Simpson's favour in February.
