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Latest Headlines
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Dec 10, 2009 2:39:00 PM MST
Husky Energy to buy 98 gas stations in Ontario from Suncor Energy (Husky-Suncor)
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CALGARY _ Integrated oil company Husky Energy Inc. (TSX:HSE) is expanding its gasoline station network in Ontario with a deal to acquire nearly 100 fuel outlets in the province from Suncor Energy Inc., a move required for federal regulatory approval of Suncor´s summer takeover of Petro-Canada.
Calgary-based Husky announced late Thursday it has signed a deal to buy 98 gas stations in Ontario from Suncor (TSX:SU), Canada´s largest oil and gas company.
Financial terms of the deal were not immediately available.
The agreement includes 68 Sunoco branded stations and 30 Petro-Canada branded stations, the company said. It will increase Husky´s total to 128 stations in Ontario.
Thursday´s announced transaction follows the late summer sale of Suncor´s gasoline terminal storage and distribution capacity in the Toronto area to Ultramar Ltd., a major Quebec-based refiner owned by Valero Corp. (NYSE:VLO), the largest gasoline producer in the Untied States.
Ultramar will acquire the capacity under an agreement between the regulator and the company to supply 1.1 billion litres of terminal and distribution capacity for refined petroleum in the Toronto area for 10 years.
At Husky, which already operates a fuel station network in Western Canada, the company said it plans to convert its newly acquired stations to the Husky banner in the second quarter of 2010.
`It represents an attractive opportunity for our shareholders and further strengthens the company´s strategy of being a fully integrated oil and gas business," Husky president and chief utive John Lau said in a statement after markets closed.
Suncor committed to sell the stations under an agreement with the Competition Commissioner in July as part of its merger with Petro-Canada that d a dominant Canadian energy company with operations in the oilsands, natural gas production, offshore oil and international energy development.
Under the agreement, Suncor was required to sell 104 gas stations in southern Ontario to allay concerns that the merger would have reduced competition in the gasoline industry.
Husky, with about 4,600 employees at the end of 2008, is an integrated energy company with operations in Canada, the United States, Southeast Asia and elsewhere. The company operates in the oilsands and has heavy oil properties in Alberta, refineries in Canada and the United States as well oil production off the East Coast.
The Calgary company is controlled by Li Ka-shing, the billionaire Hong Kong billionaire whose companies employ 240,000 people around the world in everything from telecom, energy and shipping to real estate and other sectors.
In trading Thursday on the Toronto Stock Exchange, Husky shares rose 77 cents to close at $27.58, a gain of 2.9 per cent.
Suncor stock closed at $36.80, up $1.16 or 3.3 per cent.
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