(P&GJ) — Sunoco LP will buy Canada-based Parkland in a deal valued at about $9.1 billion, including debt, the U.S. fuel supplier said on May 5, in a move the companies said would create the largest independent fuel distributor in the Americas.

The companies announced the agreement on May 2, stating that Sunoco will acquire all outstanding shares of Parkland in a cash and equity transaction, including assumed debt.

As part of the deal, Sunoco will form SUNCorp, a new publicly traded Delaware limited liability company that will hold limited partnership units economically equivalent to Sunoco’s common units. The new entity, treated as a corporation for tax purposes, will maintain equivalent dividends for two years following closing.

Under the agreement, Parkland shareholders will receive 0.295 SUNCorp units and C$19.80 per share, reflecting a 25% premium over the companies’ recent share prices. Shareholders may alternatively elect to receive C$44.00 per share in cash or 0.536 SUNCorp units, subject to proration.

Sunoco has secured a $2.65 billion bridge loan to fund the transaction, which is expected to close in the second half of 2025 following shareholder and regulatory approvals.

“This acquisition enables advantaged fuel supply, diversifies Sunoco’s portfolio, and accelerates growth,” the company said in a statement. Sunoco expects the deal to deliver $250 million in synergies within three years.

Sunoco also pledged to maintain Parkland’s Canadian operations, including its Calgary headquarters and the Burnaby refinery. The company said it will continue to invest in Parkland’s Canadian transportation energy infrastructure and support low-carbon fuel production.

The acquisition will also expand investment opportunities in Canada, the Caribbean and the United States, the company added.