Sunoco will buy embattled Parkland in a $9.1 billion consolidation of two of the biggest fueling and convenience store powers across the Americas, creating a network of more than 11,000 fueling stations.
Sunoco is acquiring Calgary-based Parkland in the cash-and-stock deal immediately after Parkland lost a dramatic proxy fight to activist billionaire Kyffin Simpson of Simpson Motorsport fame.
“This strategic combination is a compelling outcome for Parkland shareholders,” said Parkland executive chairman Michael Jennings in a statement. “This partnership creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas.”
However, Simpson, who holds about 20% of Parkland shares, is criticizing the Parkland board for rushing to make the Sunoco deal prior to the transition of new board directors.
“This eleventh-hour maneuver represents a new turn in the Board’s deplorable track record of governance and should come as no surprise to shareholders,” Simpson Oil said in a statement, putting the Sunoco deal in doubt.
Simpson, a Barbados billionaire who’s best known in the IndyCar and motor racing world, previously sold his Caribbean gas station chains to Parkland, and quickly built up his shareholder influence in the company. Simpson, who’s knighted by the British government, was initially a passive shareholder but won a Canadian court case earlier this year that gave him an activist role.
Parkland had previously rejected a Sunoco’s $8 billion offer two years ago. Parkland called the new $9.1 billion deal a 25% premium for shareholders.
