HollyFrontier buying Petro-Canada Lubricants

HollyFrontier Corp., Dallas, has entered a definitive agreement to acquire Petro-Canada Lubricants Inc. (PCLI) from Suncor Energy for $1.125 billion (Can.), including working capital estimated at $342 million.

HollyFrontier Corp., Dallas, has entered a definitive agreement to acquire Petro-Canada Lubricants Inc. (PCLI) from Suncor Energy for $1.125 billion (Can.), including working capital estimated at $342 million.

The buyer said the 15,600-b/d PCLI plant at Mississauga, Ont., is North America’s only producer of Group III base oils. HollyFrontier also will acquire PCLI’s global distribution and marketing assets, including a perpetual exclusive license to use the Petro-Canada trademark with lubricants.

HollyFrontier said the acquisition will make it the fourth-largest lubricants producer in North America, with capacity of 28,000 b/d, about 10% of North American production.

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