Sunoco LP has entered into a definitive agreement to acquire Parkland Corp. in a transaction valued at $9.1 billion, including assumed debt, in a move that significantly expands Sunoco’s presence across North America and the Caribbean. The deal creates a cross-border fuel distribution and convenience retail powerhouse with complementary operations and strong cash flow generation.
The cash-and-equity transaction will combine two major players in energy and transportation infrastructure. Sunoco, which operates in over 40 U.S. states, Puerto Rico, and parts of Europe and Mexico, will gain access to Parkland’s extensive Canadian and Caribbean footprint. Parkland operates approximately 4,000 retail and commercial locations across 26 countries and owns Canada’s Burnaby Refinery, a key supplier of low-carbon fuels to the Lower Mainland.
To facilitate the deal, Sunoco will create a new Delaware-based publicly traded entity, SUNCorp LLC.
Sunoco has secured a $2.65 billion, 364-day bridge term loan to finance the cash portion of the transaction. The deal is expected to close in the second half of 2025, pending shareholder approval and regulatory clearances in both the U.S. and Canada.
Sunoco anticipates $250 million in annual synergies by year three and projects the transaction will immediately boost distributable cash flow.
The transaction includes several strategic commitments in Canada. Sunoco will maintain Parkland’s headquarters in Calgary and continue investing in the Burnaby Refinery. It will also support Parkland’s planned expansion of Canadian transportation energy infrastructure, including renewable fuels and EV charging.
Industry analysts welcomed the acquisition, citing strong industrial logic and financial benefits. “This deal gives Sunoco immediate scale in Canada and the Caribbean and unlocks significant synergy potential,” wrote Jefferies analyst Thomas Stafford in a research note. “Parkland’s refining, retail, and renewable assets are a strong strategic fit that complements Sunoco’s U.S. midstream and distribution network.”
BMO Capital Markets said the structure of the SUNCorp entity allows Sunoco to preserve its tax-advantaged master limited partnership (MLP) status while broadening access to public capital. “It’s a creative structure that preserves yield and opens new growth channels,” the firm noted.
Morningstar analysts also highlighted the long-term potential of the deal. “This is not just about scale—it’s about positioning for the energy transition,” said Morningstar’s Justin Lee. “Parkland’s investments in renewable fuels, carbon offsets, and EV infrastructure give Sunoco an expanded platform to compete in the low-carbon economy.”
The deal was unanimously approved by both boards.
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