Canadian grocery and pharmacy retailer Loblaw Cos Ltd said on Wednesday it would sell its gas station business to asset manager Brookfield Business Partners LP for about $540 million (US$402.17 million).
Brookfield said it intends to rebrand the gas stations, through an agreement with Imperial Oil Ltd, to Exxon Mobil Corp‘s Mobil fuel brand.
The sale includes Loblaw’s 213 retail gas stations and convenience stores adjacent to the gas stations across Canada.
This deal will mark the introduction of the Mobil fuel brand in Canada, the companies said in a joint statement.
Chevron Corp also sold its Canadian gasoline stations and refinery in British Columbia to Parkland Fuel Corp , a marketer of petroleum products, for $1.46 billion on Tuesday.
Loblaw said the deal is expected to close in the third quarter of 2017.
RBC Capital Markets will serve as financial adviser to Loblaw, while Scotiabank will serve as Brookfield Business Partners’ financial adviser.
Update: Brookfield Business Partners was spun out of Toronto-based Brookfield Asset Management last year. The listed vehicle allows Brookfield shareholders to invest directly in the firm’s private equity portfolio.
In a statement, Cyrus Madon, CEO of Brookfield Business Partners, said the investment in Loblaw’s portfolio of gas stations “presents an opportunity to own a business with significant scale, strong customer loyalty, and compelling opportunities for further growth.”