Imperial Oil to sell 497 retail stations for C$2.8 billion

Mon Oct 10, 2016 11:03am EDT
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(Reuters) - Imperial Oil Ltd IMO.TO, Canada's No. 2 integrated oil producer and refiner, said it agreed to sell 497 remaining company-owned Esso retail stations to five fuel distributors for about C$2.8 billion ($2.09 billion).

The buyers include Alimentation Couche-Tard Inc ATDb.TO, 7-Eleven Canada Inc and Parkland Fuel Corp PKI.TO, the company said on Tuesday.

All the three companies already operate Esso-branded stations in the country.

Imperial, majority-owned by Exxon Mobil Corp (XOM.N: Quote), said in January 2015 it was evaluating selling the stations.

Some 1,200 of the company's 1,700 Esso-branded sites operate under a wholesaler model, where the stations are owned by other parties but retain the Esso brand and are supplied by Imperial.

Imperial Oil said on Tuesday it expects the sales to close by the year-end.

(Reporting by Vishaka George in Bengaluru; Editing by Sriraj Kalluvila)

President and CEO Rich Kruger of Imperial Oil addresses shareholders during the company's annual general meeting in Calgary, Alberta, April 30, 2015. REUTERS/Todd Korol