Parkland Fuel Corp. says it will pay $1.46 billion to acquire Chevron Canada's fuel business, including 129 gas stations in the Vancouver area and a refinery in Burnaby, B.C.
The Red Deer, Alta.-based company says the new stations will complement its existing 44 Chevron-branded sites in British Columbia and cement its position as one of Canada's largest fuel retailers with more than 1,800 service stations.
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The sale also involves 37 commercial cardlock and three marine fuelling locations, as well as three terminals in B.C. and a wholesale business that includes aviation fuel sales to the Vancouver International Airport.
Parkland CEO Bob Espey says the acquisition will support Parkland's existing operations in B.C., leading to between $35 million and $50 million in annual cost savings after closing.
Parkland plans to issue 24 million shares to raise $660 million to help finance the deal.
The deal is expected to close by mid-year.