Written by BNN.ca
Loblaw Companies Limited (TSX:L) is selling all 213 of its gas stations across Canada for $540 million to Brookfield Business Partners (NYSE:BBU/TSX:BBU/UN) and its partners. The proposed deal is subject to certain conditions, but is expected to close in this year’s third quarter.
Brookfield Business Partners, a unit of Brookfield Asset Management (NYSE:BAM/TSX:BAMa), says it sees potential for expanding the network of Loblaw-owned gas stations and associated kiosks after the deal closes.
Cyrus Madon, CEO of Brookfield Business Partners, said in a statement Wednesday:
“This transaction aligns with our strategy of owning and adding value to high quality businesses with solid long-term fundamentals in sectors we know well. We look forward to working with Loblaw to enhance and grow the current network of gas stations.”
Brookfield said it would use the Mobil fuel brand under an agreement with Calgary-based Imperial Oil Ltd. (TSX:IMO), a subsidiary of Houston-based ExxonMobil Corp. (NYSE:XOM), one of the biggest integrated oil and gas companies in the United States but would continue to use the PC Plus loyalty program offered by Loblaw…
Loblaw said it expects to use proceeds from the sale of its fuel business for its corporate activities. Said Sarah Davis, the president of Loblaw Companies Ltd., in a news release:
“This is a positive outcome for our customers, our gas station operators, and our company,”
