Parkland Corp. is moving closer to sealing an $8 billion merger with U.S.-based Sunoco LP, filing its formal proposal with shareholders, and setting a vote for June 24. The deal, if approved, would combine two major fuel distributors under a new, U.S.-listed company called SunocoCorp, creating one of the largest independent fuel networks in North America.
In a detailed circular released to investors this week, Parkland described the merger as “transformational,” outlining a plan to unite its Canadian and Caribbean operations with Sunoco’s extensive U.S. network. The merger would result in a company with a vast footprint across the continent, including over 7,000 fuel stations and thousands of miles of pipeline infrastructure.
Parkland shareholders will vote on whether to approve the plan at a special meeting later this month. The company’s board is urging approval, calling it a “compelling opportunity” for growth and long-term stability.
The proposed deal offers Parkland shareholders three payment options: a mix of cash and shares in the new SunocoCorp, an all-cash payout, or a full share exchange. The offer, valued at $32 USD per share (about C$44), represents a 25% premium over Parkland’s recent trading average.
Parkland says the merger would strengthen its competitive position by combining its growing portfolio in renewable fuels, EV charging, and retail convenience with Sunoco’s expansive U.S. fuel business. Sunoco brings more than 14,000 miles of pipelines to the table and over 7,400 branded fuel outlets.
Together, the companies expect to save $250 million annually within three years, while reducing exposure to any single market or supply chain.
Despite shifting its primary listing to the U.S., the new company has pledged to keep Parkland’s Canadian headquarters in Calgary and to maintain investments in key assets like the Burnaby Refinery in British Columbia. That promise, Parkland says, underscores Sunoco’s confidence in the Canadian market.
Parkland’s board, alongside a special committee that led negotiations, says it sought input from multiple independent advisors before endorsing the offer. The merger must still be approved by two-thirds of shareholders and pass through Canadian court and regulatory reviews.
If the deal moves forward, it will mark one of the largest energy mergers involving a Canadian company in recent years — and signal Parkland’s transformation from a regional fuel supplier into a continental powerhouse, according to Parkland and Sunoco.
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