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$2.4 billion oil change

SHAWN CUMBERBATCH, [email protected]

$2.4 billion oil change

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Thirteen years after being established by Barbadian entrepreneur Sir Kyffin Simpson, regional fuel company SOL will fall into Canadian hands in a deal worth US$1.21 billion (BDS$2.42 billion).

Parkland Fuel Corporation, Canada’s largest marketer of fuel and petroleum products, on Wednesday announced the acquisition of 75 per cent of the issued and outstanding shares in the capital of SOL Investments Limited.

And in an hour-long investor webcast and conference call with securities analysts and investors, Parkland president and chief executive officer Bob Espey also revealed “after the second anniversary of the transaction, there are rights for the Simpson Group to sell the remaining 25 per cent of Sol to Parkland”.

Financial analyst Jeremy Stephen expected the transaction to benefit the Simpson family by as much as “$1 billion before taxes”. He said Barbados would also potentially benefit via increased foreign exchange and, possibly, taxes. (SC)

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