Chevron Sells Canadian Refinery, Gas Stations in $1.1 Billion DealBy
Parkland shares rise after $1.1 billion deal announced Tuesday
Plan builds on earlier agreement to buy CST locations
Parkland Fuel Corp. rose the most in almost eight months after agreeing to buy Chevron Corp.’s gas stations and refinery in British Columbia for about C$1.46 billion ($1.1 billion), a deal that secures its position as Canada’s largest fuel retailer.
The sale includes 129 retail service stations, 37 commercial cardlock and three marine fueling locations, Red Deer, Alberta-based Parkland said in a statement Tuesday. Parkland is also picking up a refinery in Burnaby, terminals throughout British Columbia and a wholesale business that provides aviation fuel to Vancouver International Airport.
The deal complements the 44 Chevron-branded sites Parkland has in British Columbia and builds on the $750 million acquisition of CST Brands Inc.’s Canadian assets that it expects to complete this quarter. For Chevron, the sale is part of Chief Executive Officer John Watson’s plan to raise as much as $10 billion from asset sales this year. The company has been marketing everything from Asian oil fields to African storage facilities to generate cash.
Parkland soared as much as 9.5 percent to C$31.60 and was trading up 6.3 percent at C$30.67 at 10:50 a.m. in Toronto. A close at that price would mark the biggest gain since Aug. 22. Shares of San Ramon, California-based Chevron rose 0.3 percent to $105.96 in New York.
— With assistance by Joe Carroll