Suncor to acquire Petro-Canada

addyguy · Mar 23, 2009

http://business.theglobeandmail.com/servlet/story/RTGAM.20090322.wsuncor0322/BNStory/Business/home

I don't know if this is good news or not. Yes, creates a domestic giant that can compete with the best.

But, I liked PC and the products they made. I know they were privatized years ago, but I still liked the 'image' of Canada's gas station. And, as we know here, they produce some kick-but oils.

I'm really curious where this will go - Suncor is the 'owner' of the Sunoco trademark in Canada, so I'm wondering if eventually all PC gas stations will become 'Sunoco' stations.

I'm also curious is because of both comapanies focus on development of 'unconventional' resources, if they will get out of the commerical oil/gas market, and just concentrate on development of fields.

Will be interesting to watch!

addyguy · Mar 23, 2009

Got part of the answer on the PC website about the merge:

"Suncor Energy Inc. ("Suncor") (TSX:SU) (NYSE:SU) and Petro-Canada ("Petro-Canada") (TSX

CA) (NYSE

CZ) today announced that they have agreed to merge the two companies. Upon completion of the transaction, the parties have agreed the combined entity will operate corporately and trade under the Suncor name, while maintaining the strong brand presence and customer loyalty of Petro-Canada in refined products."

Johnny · Mar 23, 2009

I sure hope this is a good move. I always had high respect for Petro Canada and their products. Oh the trying economic times.

salesrep · Mar 23, 2009

Soo. Suncor name and PC products? That out to work for the PC loyalist I would think.

addyguy · Mar 23, 2009

Originally Posted By: salesrep
Soo. Suncor name and PC products? That out to work for the PC loyalist I would think.

Yeah, so far that 'looks' like what will happen.

PC has spent a LOT of $$$ in the last few years upgrading their retail gas stations to very sleek, modern format (seen in news story), so it wouldn't make sense for Suncor to scap all those station and re-build them as Sunoco/Suncor stations. There is a LOT of brand-recognition with the Petro-Canada name in Canada.

I hope this works out too.

salesrep · Mar 23, 2009

I was North of the border several times this past Summer and Petro-Canada sure seemed to stand out to me. Albeit my perspective is bit skewed.

salesrep · Mar 23, 2009

cnbc Suncor/PC in 120 sec.

addyguy · Mar 23, 2009

What???

salesrep · Mar 23, 2009

CNBC had a short discussion of the buyout.
The gist being that it is rare for the stock prices of both the acquirer (Suncor) and the acquiree (PC) to both go up in market price. They see good synergy.

Rabbler · Mar 24, 2009

Is Suncor really a Canadian company or just the Canadian division of Sunoco?

addyguy · Mar 24, 2009

Suncor owns the brand-rights to Sunoco in Canada.

Sunoco in the U.S. is a TOTALLY different company.

addyguy · Mar 25, 2009

If the merger goes through, Sunoco disappears:

http://www.ottawacitizen.com/Business/Merger+means+Sunoco+stations/1424647/story.html

Rabbler · Mar 30, 2009

Quote from above link

The merger will create a company with 100 years worth of reserves, the largest oilsands operations, four refineries in Canada and the United States, a chain of retail gas stations and more than 680,000 barrels a day of oil and gas production.

Finance Minister Jim Flaherty said on Tuesday that the deal was a "good thing" that was important for Canada.

Liberal leader Michael Ignatieff said he supports the deal as long as the new entity is controlled in Canada.

The last line once again makes me wonder if it's really a US
company buying Petro Canada through a subsidiary

Suncor to acquire Petro-Canada

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