HollyFrontier is in advanced talks to acquire Suncor Energys Petro-Canada lubricants division via auction for a little over $1 billion, Reuters reported on Oct. 21.
Citing unnamed sources, the report said HollyFrontier submitted the highest bid and that the reason was to enable HollyFrontier to diversify its refining business while providing Suncor cash to help it pay down debt due to recent acquisitions. The report said negotiations were not finalized and the outcome could still change.
We have a policy to not comment on rumors or speculation, Suncor Spokeswoman Sneh Seetal told Lube Report.
By deadline, HollyFrontier did not respond to Lube Reports requests for comment.
Petro-Canada and Suncor merged in 2009, with the Calgary, Alberta-based companies agreeing the combined entity would operate corporately under the Suncor name, while continuing to use the Petro-Canada brand for refined products.
According to its website, Petro-Canada acquired its lubricants business from Gulf Canada in 1985. Petro-Canada bills itself as the world’s largest producer of pharmaceutical-grade white oils and the leading supplier of factory fill automatic transmission fluids. Petro-Canada blends and packages more than 350 different lubricants, specialty fluids and greases.
Petro-Canada operates a base oil plant in Mississauga, Canada, with 11,600 barrels per day of API Group II production capacity and 4,000 b/d of Group III capacity.
Photo: Danielle Scott / Flickr
The base oil plant was acquired by Suncor via its merger with Petro-Canada, which was approved by the Canadian Competition Bureau and completed in August 2009. The Mississauga refinery became a base oils-only, stand-alone plant in 1993, requiring outside feedstock sourcing.
HollyFrontier operates a base oil plant in Tulsa, Oklahoma, with 9,500 b/d of Group I production capacity.