The Competition Bureau announced today that it has reached agreements with Parkland Corporation (Parkland) and Federated Cooperatives Limited (FCL), respectively, related to their proposed acquisition of Husky retail gas stations.
The agreements will help protect consumers from paying higher gas prices as a result of eliminating the Husky stations as a competitor in 9 regions in southern Ontario and western Canada.
In November 2021, both Parkland and FCL entered into separate purchase agreements to acquire 337 Husky stations located in Ontario, Manitoba, Saskatchewan, Alberta, and British Columbia. After a thorough review, the Bureau concluded that the separate proposed transactions are likely to result in a substantial lessening of competition in the supply of fuel to consumers in the following local markets:
Portage La Prairie, Manitoba;
North Battleford, Saskatchewan;
Foam Lake, Saskatchewan; and
To resolve the Bureau’s concerns, both Parkland and FCL signed separate consent agreements with the Commissioner of Competition, whereby:
Parkland will sell 6 retail gas stations in Hamilton, Ontario, and FCL will sell the Husky station in Gimli, Manitoba to a buyer or buyers to be approved by the Commissioner.
The Husky stations in Portage La Prairie and Dauphin, Manitoba, as well as Estevan, Saskatchewan, will be transferred to Parkland instead of FCL.
The Husky dealer contracts in Foam Lake, North Battleford and Melfort, Saskatchewan, as well as Minnedosa, Manitoba, will be transferred to Parkland instead of FCL.
The Commissioner is satisfied that these agreements address the competition issues likely to result from the proposed transaction.
The complete agreements are available on the Competition Tribunal’s website.
The Bureau will publish a comprehensive position statement summarizing the analysis and findings from its review in the coming days.