Calgary-based Parkland Corp. is facing a proposed takeover by American fuel distributor Sunoco LP in a context of heightened Canada-U.S. relations and increased resource nationalism. The US$9.1-billion friendly deal was announced last week and is currently under review by the federal government under the Investment Canada Act. This review assesses whether the acquisition will present a net benefit to Canada and whether it poses any risks to national security.

Parkland, which operates fuel stations under the Ultramar, Chevron, and Pioneer brands in Canada, also owns a refinery in Burnaby, British Columbia. The company is a significant player in Canada's energy sector, and its operations are closely scrutinized, particularly in light of recent tensions with the U.S.

In March, the Canadian government updated its national security guidelines under the Investment Canada Act, reflecting concerns about potential risks to Canada’s economic security arising from closer ties between Canadian firms and foreign economies. This adjustment in perspective may complicate the approval process for the proposed acquisition by Sunoco.

Late last week, the president of the union representing 150 workers at Parkland's Burnaby refinery expressed concerns about handing critical energy infrastructure over to a foreign multinational during an ongoing trade conflict. This sentiment underscores the broader anxiety surrounding foreign ownership of essential resources in the current geopolitical climate.

Jennifer Quaid, a corporate law professor at the University of Ottawa, remarked that the timing of the bid could be unfavorable due to heightened scrutiny of U.S. President Donald Trump's administration and its associated policies. The recent threats of tariffs and annexation from Trump have intensified calls within Canada to bolster domestic resources and build infrastructure that would enable access to markets beyond the United States.

Quaid elaborated that perception plays a vital role in this situation. There will likely be more attention directed towards this American acquisition, especially as it pertains to a sector critical to Canada's energy capacity and economy. As discussions around national security and economic independence grow louder, foreign investments like Sunoco’s bid might face increasing challenges.

In light of these concerns, Parkland has stated that Sunoco is committed to protecting Canadian jobs, retaining its Calgary headquarters, and investing in Canada. This assurance aims to mitigate some of the apprehensions surrounding the proposed takeover and ensure stakeholders that domestic interests will be prioritized.

The proposed takeover of Parkland Corp. reflects a significant development in the energy sector, intertwining corporate interests with national policy considerations in a complex geopolitical landscape. As the review process unfolds, the implications of the bid will become increasingly clearer, shaping the future of Canada’s energy infrastructure amidst a backdrop of international relations and domestic priorities.

This report by The Canadian Press was first published on May 13, 2025.

Companies involved in this story include Parkland Corporation (TSX: PKI).