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