U.S. stocks rise on Fed cut bets; earnings continue to flow
CALGARY - The Canadian government has approved Sunoco LP’s (NYSE:SUN) proposed acquisition of Parkland Corporation (TSX:PKI), the companies announced Tuesday. Sunoco, currently valued at $56.7 billion, has demonstrated strong financial performance with an EBITDA of $14.7 billion in the last twelve months.
The approval, granted under the Investment Canada Act, represents a significant milestone for the transaction, which is expected to close in the fourth quarter of 2025. The deal remains subject to certain remaining regulatory approvals and the satisfaction of customary closing conditions. According to InvestingPro data, Sunoco maintains a healthy dividend yield of 8% and has raised its dividend for three consecutive years.
Parkland operates as a fuel distributor, marketer, and convenience retailer across 26 countries in the Americas, with approximately 4,000 retail and commercial locations throughout Canada, the United States, and the Caribbean region.
Sunoco LP, a master limited partnership with operations in over 40 U.S. states, Puerto Rico, Europe, and Mexico, maintains an extensive infrastructure network including approximately 14,000 miles of pipeline and over 100 terminals. The partnership serves about 7,400 Sunoco and partner branded locations.
The transaction, first announced earlier this year, will significantly expand Sunoco’s geographic footprint into Canada and strengthen its position in the fuel distribution market across North America.
Neither company disclosed financial details of the transaction in their press release statement.
The companies’ announcement emphasized that the deal remains contingent on obtaining additional regulatory approvals before completion.
In other recent news, FourPoint Resources has announced an agreement with Energy Transfer to expand the Price River Terminal in Utah, doubling its crude oil export capacity to 50,000 barrels per day. This expansion aims to enhance the deliverability of American Premium Uinta crude to refineries across the United States. Meanwhile, Sunoco has launched private exchange offers for notes issued by Parkland Corporation, a step in its planned acquisition of Parkland. The exchange covers notes valued at approximately C$1.6 billion and US$2.6 billion, with Sunoco offering new notes with similar terms. Additionally, Sunoco and Parkland have cleared a key antitrust waiting period, moving their acquisition deal closer to completion, which is expected by the fourth quarter of 2025. Energy Transfer is also nearing a deal to sell LNG from its planned Lake Charles terminal to MidOcean Energy, with MidOcean funding 30% of the construction costs for rights to 30% of the production. Lastly, Darling Ingredients has been added to Raymond James’ Analyst Current Favorites list, replacing Energy Transfer, due to its strong legacy business lines in Feed and Food.
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