Saskatoon-based Federated Co-operatives Limited (FCL) is investing $264 million to purchase 181 Husky retail fuel sites in Western Canada from Cenovus Energy Inc., the largest retail acquisition in the Co-op's history.
The December 2021 announcement was made on behalf of local Co-ops in the Co-operative Retailing System.
The acquired retail fuel sites include a mix of gas bars, on-site car washes and convenience stores. Once the deal is complete, FCL said, it will transfer the sites to several independent local co-ops across Western Canada.
"These new locations will strengthen our presence in Western Canada and will bring our unmatched service and support to new geographic areas,” stated the FCL in a release.
The deal is part of about $660 million in asset sales Cenovus announced December 7. It’s subject to regulatory review by the Competition Bureau of Canada, which may determine which sites stay in the deal.
Those that stay will be transferred over to local Co-ops, while others will remain with Husky branding for a short time while being suppled, according to FCL.
The regulatory review for the purchase — which is FCL’s largest in terms of money spent and number of sites — will likely conclude by the middle of 2022, the company said.
In cases where Husky and Co-op locations are close to each other, it’s possible that the regulatory review won’t allow FCL to purchase both sites, FCL vice president of energy Brian Humphreys told the Saskatoon Star Phoenix.
The sites are a mixture of gas bars, on-site car washes and convenience stores. They include outlets in Manitoba and Saskatchewan, but most are in Alberta and British Columbia, where the brand is less concentrated, FCL vice president of finance Tony Van Burgsteden said.
The Regina Co-op refinery has enough capacity to cover expanded service. The ethanol complex near Belle Plaine, Saskatchewan will also supply the expanded network of Co-ops and independent suppliers.