Parkland Fuel Corp to buy Canada's Pioneer Energy

Wed Sep 17, 2014 5:44pm EDT
 
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CALGARY, Alberta, Sept 17 (Reuters) - Canada's largest fuel distributor and retailer, Parkland Fuel Corp, will buy fellow retail fuel marketer Pioneer Energy, which is part-owned by Suncor Energy Inc, for C$378 million ($345 million), Parkland said on Wednesday.

Pioneer is jointly owned by The Pioneer Group Inc and Suncor, which is Canada's largest oil and gas company.

The Pioneer Group will receive C$76 million, or 39 percent of the total consideration, in cash, and C$119 million, or 61 percent of the total consideration, in common shares of Parkland. Suncor will receive C$183 million in cash.

Pioneer's holdings include a network of 393 gas stations throughout Ontario and Manitoba. It distributes 5.1 percent of total retail fuel volumes across Canada.

($1=$1.10 Canadian) (Reporting by Nia Williams; Editing by Peter Galloway)