Loblaws gas station sale valued at $540 million
Loblaws gas stations across Canada will be sold for about $540 million to asset manager Brookfield Business Partners LP.
The announcement by the Canadian grocery and pharmacy retail giant came on Wednesday.
According to Brookfield, the gas stations will be rebranded through an agreement with Imperial Oil Ltd, to Exxon Mobil Corp’s Mobil fuel brand. The deal will mark the introduction of the Mobil fuel brand into Canada.
The sale includes 213 retail gas stations and convenience stores which are adjacent to the stations.
“Our investment in Loblaw’s leading portfolio of gas stations presents an opportunity to own a business with significant scale, strong customer loyalty, and compelling opportunities for further growth,” said Cyrus Madon, CEO of Brookfield Business Partners.
Once the sale is complete, the newly branded gas stations will continue to offer the PC Plus loyalty program.
Sarah Davis, President, Loblaw Companies Limited said “This is a positive outcome for our customers, our gas station operators, and our company.”
The deal is expected to close during the third quarter of this year.