Shell Canada Ltd. will sell select gas stations in three markets as part of an agreement with the Competition Bureau of Canada to resolve competition concerns related to its proposed acquisition of 56 retail gas stations from Empire Co. Ltd.’s Sobeys Capital Inc. subsidiary in western Canada.
The bureau concluded that the transaction “would likely substantially lessen or prevent competition in the supply of retail fuels in three markets in Alberta and British Columbia.” Shell and its affiliates, including Canadian Mobility Services Ltd., will divest assets in markets including Brooks, Alberta, Fort St. John, British Columbia, and Mission, British Columbia, to a buyer or buyers approved by the Commissioner of Competition.
The sites are co-located with Sobeys grocery stores.
The acquisition “supports Shell Canada’s ambitions for continued growth and to be leaders through the energy transition” Kent Martin, general manager of Shell Canada Mobility, said in December when the companies announced the deal. “These 56 locations will provide opportunities to offer customers expanded fueling options including Shell Recharge electric-vehicle charging, hydrogen and lower-carbon premium fuels and enable growth of non-fuel sales through an enhanced convenience retail offering.”
London-based Shell’s Canadian operations include oil and gas exploration, refining and manufacturing, emissions reduction initiatives and fuel delivery. It supplies fuel to approximately 1,383 retail stations across Canada.
Sobeys, based in Stellarton, in Nova Scotia, Canada, is a food retailer that also operates a retail fuel business. It owns approximately 391 retail fuel stations and related convenience stores across Canada.
The proposed acquisition includes all of Sobeys’ existing stations in western Canada.
In 2012, Sobeys purchased 236 gas stations and related convenience stores in Quebec and Atlantic Canada in a deal with Shell Canada
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.