Emily Elconin/Bloomberg/Getty Images
Key Takeaways
- Sunoco has agreed with Canadian fuel distributor Parkland to purchase them for $9.1 Billion in cash and shares.
- Sunoco shares fell Monday, but Parkland rose in Toronto after the news.
- Sunoco is scheduled to announce its first-quarter earnings on Tuesday before the bell.
Sunoco (SUN), on Monday, announced that it had reached an agreement to acquire Canadian rival Parkland for a total of approximately $9.1 billion.
Sunoco shares dropped by almost 6% after the news in New York. Parkland shares, however, rose by more than 5% following the news in Toronto. Sunoco shares are expected to grow by about 6% between now and 2025.
According to the terms of the agreement, Parkland shareholders receive 0.295 shares of SUNCorp (the new combined company) and 19.80 Canadian Dollars for each Parkland Share. Sunoco reported that the deal represents a 25 percent premium over the volume-weighted daily average price for both companies up to Friday. The deal is expected close in the second quarter of 2025.
Sunoco stated that the combination will be “immediately beneficial” and it plans to continue its investment in Parkland’s low carbon fuel refinery located in Burnaby, British Columbia.
Sunoco’s first-quarter results are scheduled to be released Tuesday morning before the opening of the bell.
Article Sources Investopedia requires that writers use primary sources in order to support their work. These include whitepapers, government data, original reports, and interviews with experts in the industry. We also use original research from other reputable publications when appropriate. Our website contains more information about the standards that we use to produce accurate, unbiased content. Editorial Policy
Sunoco LP. Sunoco LP will acquire Parkland Corporation, a transaction valued at $9.1 billion.
Sunoco LP. Sunoco Announces First Quarter 2019 Earnings Release and Call Time.
Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may affect how and where listings are displayed. Investopedia may not include all available offers in the marketplace. Partner Links
