07:44 AM EDT, 05/05/2025 (MT Newswires) -- NYSE-listed Sunoco ( SUN ) on Monday agreed to acquire embattled Parkland (PKI.TO) in a cash and equity transaction valued at about US$9.1 billion, including assumed debt.

The deal comes as Parkland is set to hold an annual meeting where directors and executives are expected to face pressure from top investor Simpson Oil and other shareholders who are pushing for more management and strategy changes at the company.

"This strategic combination is a compelling outcome for Parkland shareholders," said Michael Jennings, executive chairman of Parkland. "The board unanimously recommends the proposed transaction, recognizing Sunoco's ( SUN ) commitment to safeguarding Canadian jobs, retaining the Calgary head office, and further investing in Canada."

Under the terms, Parkland shareholders will receive 0.295 SUNCorp units and C$19.80 for each Parkland share.

As an alternative, Parkland shareholders can elect to receive C$44.00 per Parkland share in cash or 0.536 SUNCorp units for each Parkland share, subject to proration to ensure that the aggregate consideration does not exceed C$19.80 in cash per Parkland share outstanding and 0.295 SUNCorp units per Parkland share.

For two years upon closing, Sunoco ( SUN ) will ensure that SUNCorp unitholders will receive the same dividend equivalent as the distribution to Sunoco ( SUN ) unitholders.

"This transaction delivers immediate value for shareholders, including an attractive 25% premium," said Bob Espey, president and CEO of Parkland. "Sunoco ( SUN ) shares our commitment to growth, customer service, operational excellence, and ongoing investment in Canada, making our combined business stronger and better positioned for sustained success."

Parkland's board recommends that shareholders vote in favor of the transaction during its annual and special meeting on June 24. The company previously planned to hold its annual meeting on May 6.