Loblaw is selling its network of 213 gas stations and attached convenience stores to a unit of TSX-listed Brookfield Business Partners for $540M.
The grocery chain announced the news in a release Wednesday morning. Brookfield plans to convert all of the stations to the brand name Mobil, which is well known in the U.S. and elsewhere but not in Canada thus far.
All of the stations are located next to Loblaw-owned retail grocery stores and they will continue to offer the company’s loyalty program, PC Points.
The deal is expected to close in the third quarter of this year.
It’s the second major move in the gas station industry to be announced in recent days, as Parkland Fuels announced earlier this week that it would be buying Chevron’s line of Canadian stations for almostÂ $1.5 billion.
And last year, Imperial Oil sold its remaining 497 Esso retail stations in Canada to five buyers for a total of $2.8 billion. Parkland was also one of the purchasers in that deal.