Parkland Income Fund is a step closer to becoming Canada’s largest independent petroleum distributor.
The Red Deer-based company (TSX: PKI.UN), announced on Thursday that the Commissioner of Competition has said it will not oppose Parkland’s purchase of Bluewave Energy Limited Partnership under the federal Competition Act. The deal, which was struck Dec. 21, was subject to regulatory approval and is now expected to close on Jan. 31.
Based in Nova Scotia, Bluewave Energy delivers diesel fuel, gasoline, heating oil, lubricants and related products and services, and is Shell Canada’s largest branded distributor. It will become Parkland’s Bluewave division, with Bluewave Energy’s president and CEO Bill Sanford serving as the division’s president.
Parkland said previously that Bluewave Energy’s 2008 fuel volumes would boost its own volumes by 25 per cent, and increase its earnings by 13 to 15 per cent. The announced purchase price was $214 million.
Parkland operates retail and wholesale fuels and convenience store businesses at about 612 locations under the Fas Gas Plus, Fas Gas, Race Trac Fuels and Short Stop Food Stores brands, as well as through independent branded dealers. It transports fuel and other products, and supplies propane, bulk fuel, heating oil, lubricants, industrial fluids, agricultural inputs and associated services to commercial and industrial customers, and operates the Bowden refinery as a storage and contract processing site.
With the Bluewave Energy acquisition, it will have operations in every province except Newfoundland and Labrador.
Trading on the Toronto Stock Exchange closed prior to Parkland’s announcement, with its units ending the day at $12.78, down 22 cents.