Sunoco acquisition of Parkland clears antitrust waiting period

Published 22/09/2025, 13:06
Sunoco acquisition of Parkland clears antitrust waiting period

DALLAS - Sunoco LP (NYSE:SUN) and Parkland Corporation (TSX:PKI) announced Monday that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired for their pending acquisition deal, satisfying a key regulatory requirement.

The transaction, which would see Sunoco acquire Parkland, is now expected to close in the fourth quarter of 2025, subject to additional regulatory approvals and customary closing conditions, according to a press release statement.

Sunoco operates as an energy infrastructure and fuel distribution master limited partnership across more than 40 U.S. states, Puerto Rico, Europe, and Mexico. The company’s midstream operations include approximately 14,000 miles of pipeline and over 100 terminals, complementing its fuel distribution business that serves about 7,400 branded locations.

Parkland, headquartered in Canada, is an international 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 expiration of the antitrust waiting period marks progress toward completing the acquisition, though the companies must still secure other regulatory approvals before finalizing the deal.

Sunoco’s general partner is owned by Energy Transfer LP (NYSE:ET), which currently offers investors a substantial 7.63% dividend yield and has maintained dividend payments for 20 consecutive years. According to InvestingPro analysis, ET maintains a GOOD overall financial health score and appears undervalued based on its Fair Value assessment. For deeper insights into ET’s financial metrics, valuation, and growth potential, investors can access the comprehensive Pro Research Report, which provides detailed analysis of this prominent player in the Oil, Gas & Consumable Fuels industry.

In other recent news, Sunoco LP has announced several financial maneuvers to support its acquisition of Parkland Corporation. The company priced an upsized private offering of senior notes totaling $1.9 billion, consisting of $1 billion in 5.625% senior notes due 2031 and $900 million in 5.875% senior notes due 2034. This offering was increased from an initial size of $850 million for each note series. Additionally, Sunoco launched a $1 billion preferred units offering, with plans to use the net proceeds alongside funds from a concurrent $1.7 billion senior notes offering to finance the Parkland acquisition. Meanwhile, Energy Transfer reported its Q2 2025 earnings, missing analyst expectations with an EPS of $0.32 against a forecast of $0.34, and revenue of $19.24 billion falling short of the anticipated $21.97 billion. Despite these misses, Scotiabank initiated coverage on Energy Transfer with a Sector Outperform rating, citing the company’s extensive asset base. These developments reflect significant financial activities and analyst perspectives in the energy sector.

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