Federated Co-op (FCL) has struck a major deal with Cenovus Energy to purchase 181 Husky retail fuel locations—including gas bars, on-site car washes and convenience stores.

The purchase price is $264 million, which is the largest retail acquisition in Co-op’s history.

FCL Chief Executive Scott Banda says this will strengthen its presence in Western Canada and create more output at the Co-op Refinery in Regina.

“We have capacity at our refinery that we are not utilizing right now. This transaction moves us closer to full utilization of the site,” Banda said. “It allows us to grow and create opportunity here in Saskatchewan.

Most of the Husky locations are in Alberta and British Columbia, but there are some in Saskatchewan and Alberta as well. Once the deal is approved, FCL will transfer the sites to several independent Co-ops across Western Canada.

Banda hopes the Federal Competition Bureau will give its approval of the sale by the middle of next year.

(Above photo–Cenovus/Twitter)