RED DEER, Alberta -- Parkland Fuel Corp., one of Canada’s largest independent marketers of fuel and petroleum products, has entered into an agreement with Alimentation Couche-Tard Inc. to acquire the majority of the Canadian business and assets of CST Brands Inc. for approximately $965 million (Canadian; $745.72 million U.S.).
Laval, Quebec-based Couche-Tard has announced a definitive merger agreement with San Antonio-based CST under which Couche-Tard will acquire CST in an all-cash transaction subject to customary conditions including approval by CST shareholders and receipt of regulatory approvals. The acquisition is conditional upon closing of the CST transaction, among other conditions, which the companies expect to occur in early 2017.
As reported in a McLane/CSP Daily News Flash, Parkland will acquire CST’s dealer and commissioned agent retail business, CST’s commercial cardlock business, CST’s commercial and home heat businesses, a number of CST’s company-operated stores to be determined following the Competition Bureau of Canada’s review of the CST Transaction, and a corporate presence in Montreal.
“This highly accretive acquisition extends Parkland’s network coverage with a premier fuel network in Québec and Atlantic Canada and enhances our presence in Ontario,” said Bob Espey, president and CEO of Parkland. “CST is a prominent fuel marketer in North America with a strong reputation for quality customer service. The acquisition allows Parkland to add the Ultramar brand, which is one of the most recognized retail fuel brands in Québec and Atlantic Canada. We look forward to welcoming the Canadian CST employees, agents and dealers to the Parkland team as we will be looking to leverage their deep expertise and knowledge of these markets.”
With this deal, Parkland:
- Becomes Canada’s largest fuel retailer, with more than 1,555 sites in communities across Canada.
- Expands its retail geographic coverage and presence in urban areas and creates “critical mass” in Québec and Atlantic Canada.
- Adds more than 3.0 billion liters of annual fuel volume.
- Adds approximately 490 dealer and commissioned agent retail sites.
- Adds 72 commercial cardlock sites.
- Adds 27 commercial and home heat sites.
- Adds company-operated retail sites to be determined following the Competition Bureau of Canada’s review of the CST transaction.
- Adds a corporate presence in Montreal with a French-language support structure.
- Adds Ultramar to its fuel brand portfolio.
- Adds scale and diversity to its supply portfolio in Québec and Atlantic Canada and enhances its supply relationships.
Red Deer, Alberta-based Parkland is an independent marketer of fuel and petroleum products. It delivers gasoline, diesel, propane, lubricants, heating oil and other petroleum products to motorists, businesses, households and wholesale customers in Canada and the United States.