Sunoco LP has passed one of its biggest regulatory hurdles in its proposed acquisition of Parkway Corporation. Approval has been granted by Ottawa under the Investment Canada Act. This approval signals a very important step in the overall transaction. We anticipate it will close in the fourth quarter of 2025, subject to additional regulatory approvals and the fulfillment or waiver of customary closing conditions.
Parkland Corp., a Calgary-based fuel retailer and refiner, touts itself as Canada’s largest and most invulnerable operator in a key sector of the Canadian economy. The approval process under the Investment Canada Act assesses whether foreign investments will provide a net benefit to Canada or pose risks to national security. Over the last year, the Canadian federal government has revised its own national security guidelines. This amendment is intended to address growing threats to the nation’s economic security and increase oversight of foreign investments.
Sunoco LP, a major U.S. fuel distributor with over 1300 convenience stores under the 7-Eleven brand, wants to grow its business with this buy. That hurdle was a significant one for major transactions in the current U.S. antitrust climate. The waiting period under the Hart-Scott-Rodino Act expired without any potential objections. This approval by both Canadian and U.S. regulatory authorities reaffirms the potential viability and market acceptance of this deal.
Parkland Corp. shareholders overwhelmingly approved the $4.5 billion takeover in a June 2025 vote. Their approval signifies confidence in Sunoco LP’s ability to manage and grow the Canadian operations effectively while ensuring compliance with regulatory standards.
The federal government should take this opportunity to examine Parkland Corp.’s contribution to Canada’s innovation ecosystem. It will consider how the company affects domestic supply chains as part of its net benefit test under the Investment Canada Act. These assessments are especially timely as there is increasing pressure to ensure that foreign investments serve our national interests.
