The possibility that a Texas Energy Company buys a Burnaby refinery, BC, Fuel Refinery has workers and energy observers in question, given Canada’s commercial fight with the United States.
Sunoco, based in Dallas, has offered $ 9.1 billion US for Parkland Corporation, based in Calgary.
Parkland has a refinery in Burnaby, along with service stations and a fuel distribution arm.
Unifor, which represents about 150 workers of the Burnaby refinery, says it has serious concerns about the agreement, since it would be similar to delivering the control of the “critical energy infrastructure to a foreign multinational” during a commercial war.
The union says that federal and provincial governments must establish binding commitments “to protect jobs and preserve refinery operations”, since it produces approximately one third of gasoline and fuel for airplanes in the region.
“Obviously, if this disappeared, the works would go and the ability to supply finished fuels would also disappear,” said Russ Day, president of Local Unifor 601, standing outside the door of the plant.
“That would put us in the hands of external refiners that may not have the same interest in this market.”
Parkland’s executive president Michael Jennings said in a statement that Sunoco has pledged to safeguard Canadian works and retain Calgary’s central office.
Are the rates lowering Parkland’s price?
Even so, some who follow the energy business are asking questions about the proposal, especially in the light of discord about trade between Canada and the United States.
“I think tariffs have the potential to reduce the value of Canadian companies,” said Jotham Peters de Navius Research, who consults on climatic and energy policy.
“[Tariffs] Add a lot of uncertainty in our markets and … maybe make our companies a little easier to acquire.
“I am worried that an American company between and buy a Canadian company, partly because I don’t really know to what extent tariffs are potentially reducing valuation.”
Similarly, the investigation of the British Columbia University and the Postdoc fellow of Philip Solimine expressed “surprise” that an agreement like this is being considered with commercial uncertainty.
“A purchase of this scale seems to be a potentially useful negotiation chip in commercial negotiations,” Solimine wrote in an email. “This is particularly true given the most strategic importance of refineries for the Canadian economy.”
The federal review is still required
The Minister of Energy and Climate Solutions of BC, Adrian Dix, said in a statement, said that his ministry was aware of the merger conversations and that Parkland and Sunoco have an agreement to continue the operations in Canada.
“We value our relationship with Parkland, and they are a key player in the BC economy and we also contribute to the production of renewable fuels in our province. Our key priority is to keep the refinery into operation,” said a Dix email.
“We are planning to meet with Parkland, Sunoco to discuss future plans later in May. We will also meet with Unifor to discuss their concerns.”
Since the agreement involves an American buyer, is subject to approval under the investment law in Canada, which reviews large -scale acquisitions of Canadian companies by foreign buyers.
CBC asked the Federal Government to comment, but had not received an answer until the deadline.
Parkland’s shareholders will vote on June 24.
