Thursday, April 20, 2017
Loblaw Companies Limited has entered an agreement to sell 100 per cent of its gas station operations to Brookfield Business Partners L.P. for approximately $540 million. The gas station network is one of the largest in Canada and includes 213 retail gas stations and associated convenience kiosks adjacent to Loblaw-owned grocery stores across the country.
Brookfield is entering into an agreement with Imperial Oil to rebrand the gas station portfolio to the Mobil fuel brand. This will mark the introduction of the Mobil fuel brand in Canada, building on its profile as a premier service station brand in the U.S. with deep presence across key markets.
The gas stations will continue to offer Loblaw’s PC Plus loyalty program. The transaction is expected to be completed during the third quarter of 2017. Loblaw said it expects to use the proceeds from the sale for “general corporate activities.”
“In Brookfield we have a strategic partner with an experienced management team and a strong business track record,” said Sarah Davis, president, Loblaw Companies Limited. “They are committed to preserving and growing the elements of the business that matter most to our customers – high quality fuel service and convenience along with PC Plus loyalty benefits. This is a positive outcome for our customers, our gas station operators, and our company.