Cenovus Energy Inc. on Thursday said it agreed to sell nearly all of its Canadian gasoline stations to Parkland Fuel Corp. in a deal worth up to C$1.5 billion ($1.25 billion), the latest consolidation in the country’s gasoline market.
Cenovus will sell 195 stations and 70 contracts under a five-year agreement Parkland, Canada’s largest independent fuel distributor and retailer, including the Ismaili Petroleum Co. and Convenience Connect stores, Cenovus said in a statement.
Parkland will pay C$590 million up front and another C$595 million if the targets meet their sales target.
Last year, Parkland bought the Petrobank Fuel & Retail Stores for about C$1.3 billion, mostly for its filling stations.
Cenovus, Canada’s No.2 oil producer, said last month that it would divest stakes in oil and gas projects to pay for its acquisition of ConocoPhillips’ oil sands business in Canada.
The company bought ConocoPhillips’ Canadian oil sands assets for C$13.3 billion in July.