Parkland Fuel Corp settles its fight with the Competition Bureau

To settle a fight with the Competition Bureau of Canada, Parkland Fuel Corp. will have to sell off assets in Ontario and Manitoba.

Parkland, a Red Deer, Alta.-based gasoline retailer, announced after markets closed Tuesday it had reached funds using the Bureau, requiring the company to sell a fill-up station in Kapuskasing, Ont. and either divest or terminate fuel supply agreements in five other towns in Ontario and Manitoba.

The announcement concludes a year-and-a-half of litigation between Parkland and also the Bureau, following the company’s acquisition of Pioneer Energy in the middle of 2014.

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AltaCorp Capital analyst Dirk Lever said inside a note the company “now has an excellent perspective around the views from the Competition Bureau that will serve Parkland well as it looks to further expand operations.”

Parkland has grown its network of fuel stations through acquisitions, together with a deal this month to buy Esso stations from Imperial Oil Ltd., and filed a shelf prospectus Wednesday that will allow it to raise as much as $500 million.