08:41 AM EDT, 05/06/2025 (MT Newswires) -- National Bank in a May 6 note noted Sunoco LP ( SUN ) entered into an agreement to acquire Parkland for US$9.1 billion ($12.6 billion), but noted "it's not a certain outcome".

Still, the bank has kept an Outperform rating, and lifted the Target Price to C$42 from $41, "reflecting probability of takeout".

Among Key Takeaways, National Bank noted the transaction is expected to close in the second half of 2025 and is subject to two thirds shareholder approval on June 24, 2025.

National said risks to this deal, borne by PKI shareholders, include FX and SUN's share price. "Fluctuations related to the equity component may cause the total consideration to fall below the $44 offer, creating risk at the time of the vote," it added. Accordingly, the bank views the deal to be "likely, but not certain".

SUN, National noted, has the option to complete the deal on the same terms via a takeover bid, which only requires 50% PKI shareholder approval.