Alberta-based Parkland Fuel buying Chevron Canada fuel business for nearly $1.5B

Parkland Fuel Corp.says it will pay $1.46 billion to acquire Chevron Canada's fuel business, including 129 gas stations in the Vancouver area and a refinery in Burnaby, B.C.

The Red Deer, Alta.-based company says the new stations will complement its existing 44 Chevron-branded sites in British Columbia and cement its position as one of Canada's largest fuel retailers with more than 1,800 service stations.

• MORENEWS |GST on carbon taxes in Alberta, B.C. worth millions in federal revenue
• MORENEWS |Calgary airport gets boost as De Beers moves charter flights from Edmonton

The sale also involves 37 commercial cardlock and three marine fuelling locations, as well as three terminals in B.C. and a wholesale business that includes aviation fuel sales to the Vancouver International Airport.

Parkland CEO Bob Espey says the acquisition will support Parkland's existing operations in B.C., leading to between $35 million and $50 million in annual cost savings after closing.

Parkland plans to issue 24 million shares to raise $660 million to help finance the deal.

The deal is expected to close by mid-year.