Imperial Sells Esso Gas Stations For $2.1 Billion

(RTTNews) - Imperial Oil Ltd. (IMO, IMO.TO) has agreed to sell its remaining 497 company-owned Esso retail stations to five fuel distributors in Canada for about C$2.8 billion, or $2.1 billion.

The sale of the retail gas stations is part of the Canadian integrated oil and gas company's efforts to boost its focus on its key oil-sands and refining businesses. The company expects the sales to close by year-end 2016.

The sale of the remaining company-owned retail stations comes more than a year after Imperial Oil said in January 2015 that it was evaluating sale of the stations.

Imperial Oil, a subsidiary of Exxon Mobil Corp (XOM), noted that among the five Esso branded distributors, Alimentation Couche-Tard Inc. will buy Esso retail stations in Ontario and Quebec, while 7-Eleven Canada Inc. will acquire the sites in Alberta and British Columbia.

In addition, Harnois Groupe pétrolier will purchase the Esso sites in Quebec, while Parkland Fuel Corp. will acquire the sites in Saskatchewan and Manitoba. Wilson Fuel Co. Limited has agreed to purchase sites in Nova Scotia and Newfoundland.

More than 1,700 Esso retail stations currently operate in Canada, with a majority operating under the branded wholesaler model.

Rich Kruger, chairman, president and chief executive officer of Imperial said, "We believe these agreements represent the best way for Imperial to grow in the highly competitive Canadian fuels marketing business."

IMO is trading at $33.81, up $0.70 or 2.11 percent on a volume of 37,561 shares.