Parkland shareholders approve Sunoco acquisition arrangement

Published 24/06/2025, 21:46
Parkland shareholders approve Sunoco acquisition arrangement

CALGARY - Parkland Corporation (TSX:PKI), currently trading near its 52-week high of $29.38, announced Tuesday that shareholders have approved all matters presented at its annual and special meeting, including the arrangement with Sunoco LP. According to InvestingPro data, the company’s stock has delivered a solid 19% return year-to-date.

The special resolution approving the arrangement received 93.46% support from voting shareholders, according to a company press release. The transaction still requires final approval from the Court of King’s Bench of Alberta and various regulatory approvals.

Parkland expects the arrangement to close in the second half of 2025.

Shareholders also elected all ten director nominees to the board, with support levels ranging from 61.18% to 91.81%. Timothy Hogarth received the highest approval rate at 91.81%, while Robert Espey received the lowest at 61.18%.

Other approved matters included the reappointment of PricewaterhouseCoopers LLP as the company’s auditor, receiving 97.87% support, and a non-binding advisory resolution on executive compensation, which passed with 64.79% approval.

Parkland operates as a fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. The company maintains approximately 4,000 retail and commercial locations throughout Canada, the United States, and the Caribbean region.

The arrangement with Sunoco represents a significant transaction for Parkland as it continues to develop its retail network and commercial operations in the fuel distribution sector.

In other recent news, Parkland Corporation has announced a dividend of $0.36 per share for the second quarter of 2025, payable on July 15 to shareholders recorded by June 20. This announcement continues Parkland’s regular quarterly dividend payments, with no changes indicated in the dividend amount. Meanwhile, Parkland is set to be acquired by Sunoco L.P. for approximately $9.1 billion in a deal that involves both cash and stock. The acquisition is subject to shareholder and regulatory approvals, and it is projected to significantly expand the combined entity’s fuel distribution capabilities.

In light of the acquisition, S&P Global Ratings placed Parkland’s credit ratings on CreditWatch with a positive outlook, suggesting a potential upgrade to align with Sunoco’s ratings. However, Moody’s Ratings has put Sunoco’s ratings under review for a potential downgrade due to the increased debt from the transaction. Additionally, Parkland’s stock has been downgraded by both JPMorgan and BMO Capital. JPMorgan downgraded Parkland to Neutral from Overweight, adjusting its price target to reflect the acquisition by Suncor Energy. Similarly, BMO Capital downgraded Parkland from Outperform to Market Perform following an acquisition offer from Sunoco, aligning the price target with the equity offer price.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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