Mobil Gas Stations are coming to Canada.
It was announced that Loblaw’s, the parent company of Real Canadian Superstore and various offshoots like Real Canadian Wholesale and others, has sold all their gas stations, convenience stores and carwashes to Brookfield Business Partners LP. The total number of stations will be 213 of which several are in Winnipeg.
Imperial Oil Ltd has partnered with Brookfield to bring the Mobil brand to Canada through Exxon Mobil Corp. of the United States. Expect the re-flagging to take place over the next several months. The sales nets $540 million for Loblaw’s and does not include any refineries.
The deal comes on the heels this week that all of Chevron’s gas stations and refinery in Canada which are located in British Columbia have been sold to Red Deer, Alberta-based Parkland for $1.5 billion. This will make Parkland Canada’s biggest gas retailer. Parkland owns assets in Manitoba through the purchase of the Pioneer gas stations in 2014 outside Winnipeg.
Last year in Winnipeg, 9 Safeway gas stations were converted to Shell stations.
The Manitoba market will likely see no benefit from the name change. It is the lack of competing refineries that mostly has an impact on prices. The only thing that can push price is aggressive grocery store cross promotion with gas purchase but has limits.
Mobil is one of the more American brands in terms of being recognized. Look for them coming soon to a Superstore near you in months to come.
This has been a editorial by John Dobbin.
To read more from John, visit his blog Observations, Reservations, Conversations