Loblaw Companies Limited will be selling its gas station operations to Brookfield Business Partners L.P. for approximately $540 million. This gas station network is one of the largest in the country, and is comprised of 213 retail gas stations. The transaction is expected to end during the third quarter of 2017.
Brookfield is also agreeing with Imperial Oil to rebrand said gas station portfolio to the Mobil fuel brand. This will be the first entrance of the Mobil fuel brand into Canada.
Despite this, the gas stations will continue to offer Loblaw’s PC Plus loyalty program. 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,” says Sarah Davis, president of 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.”
