Suncor Energy said it has reached an agreement to sell its Petro-Canada Lubricants (PCLI) in a $1.125billion deal.
The stake will be acquired by a subsidiary of HollyFrontier Corporation.
The sale includes PCLI’s production and manufacturing centre in Mississauga, Ontario and the global marketing and distribution assets held including its global offices.
Under the terms of the agreement HollyFrontier will continue to operate the lubricants business under the Petro-Canada trademark.
Chief executive Steve Williams said: “Today’s announcement is another example of how Suncor is focusing on its core assets through strategic acquisitions and divestitures that reinforce our commitment to long-term profitable growth.
“Petro-Canada Lubricants is a valuable, high-performing business that has been recognized by customers around the globe for its innovative products. When we announced we were considering divesting of the Lubricants business, we had significant interest and as such we were able to transact with a company that fully recognizes the value of the business.”