Sunoco buys Canadian gas and convenience store chain Parkland for about $9.1 billion

Sunoco is buying Canada's gas station and convenience store chain Parkland in a cash-and-stock deal valued at approximately $9.1 billion, expanding its footprint north of the border.

Parkland has approximately 4,000 locations across Canada, the United States, and the Caribbean. Sunoco has gas and convenience store locations in more than 40 states, Puerto Rico, Europe, and Mexico.

Parkland Corp. shareholders will receive 0.295 SunCorp units and $19.80 Canadian ($14.34) for each Parkland share they own. There's also an option for Parkland shareholders to choose to receive $44.00 Canadian ($31.86) per Parkland share in cash or 0.536 SunCorp units for each share.

The deal also includes the assumption of debt.

Parkland announced in March that its board was looking at strategic options for the company. It was at that point that talks with Sunoco significantly intensified, Parkland said.

Parkland will keep its headquarters in Calgary. Sunoco will also continue to invest in Parkland's Burnaby refinery, which produces low-carbon fuels.

The deal is expected to close during the second half of the year. It is subject to shareholder and court approvals. The transaction is also subject to certain regulatory approvals, including approvals under the Investment Canada Act, and approval of the listing of the SunCorp shares to be issued under the transaction on the New York Stock Exchange.

Parkland will hold a special shareholders meeting on June 24 to vote on the transaction.

If the deal doesn't close, Parkland would have to pay a $275 million break up fee, under certain circumstances.

Shares of Sunoco LP, baed in Dallas, slipped more than 2% Monday.