Transaction expected to close Q1 of 2017
CALGARY, ALBERTA – Suncor Energy today announced it reached an agreement to sell its Petro-Canada Lubricants Inc. business to a subsidiary of HollyFrontier Corporation for gross proceeds of $1.125 billion, subject to customary closing adjustments.
“Today’s announcement is another example of how Suncor is focusing on its core assets through strategic acquisitions and divestitures that reinforce our commitment to long-term profitable growth,” said Steve Williams, president and chief executive officer.
The sale includes all production and manufacturing centre in Mississauga, Ontario and the global marketing and distribution assets held by Petro-Canada Lubricants including its global offices.
Under the terms of the agreement, HollyFrontier will continue to operate the lubricants business under the Petro-Canada trademark.
“Petro-Canada Lubricants is a valuable, high-performing business that has been recognized by customers around the globe for its innovative products. When we announced we were considering divesting of the Lubricants business, we had significant interest and as such we were able to transact with a company that fully recognizes the value of the business,” said Williams.
The transaction is subject to customary closing conditions, including satisfaction of all regulatory requirements in Canada and the U.S., and is expected to close in the first quarter of 2017.
