Suncor Energy Inc. T.SU

RE:News

[Experienced]

Galic1 wrote:

RBC Capital Markets Details Possible Outcomes From Suncor's Strategic Review

25 Jul 2022 10:04 ET

 

10:04 AM EDT, 07/25/2022 (MT Newswires) -- RBC Capital Markets on Monday outlined possible outcomes from Suncor Energy Inc. (SU.TO) and Elliott Investment Management's decision to launch a strategic review of Suncor's downstream retail business. 

RBC said it expects Alimentation Couche-Tard Inc. (ATD.TO) to be involved in any potential process involving Suncor's retail assets.

ATD has ample balance sheet capacity to fund a potential transaction but the company is expected remain disciplined on price in any potential transaction, RBC said.

RBC said market concentration, especially in QC, likely precludes it from bidding for the full network.

The strategic review comes as Elliott detailed in late April possible pathways for Suncor to extract value from its assets, including a potential sale of its high quality Petro-Canada retail portfolio.

Price: 40.59, Change: +0.81, Percent Change: +2.04

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This isn't news.  There has been  speculation about them from day one.  there are also others on the list of potential buyers..eg 7/11

All of them have a price which is less than what SU bought PetroCanada for.

All that said, Alimentation Couche Tard is a natural since they are really a convenience store business attached to gas stations among other things.  So if they decide to buy it will from the money made in the store not at the pumps.