Imperial Oil has signed agreements to sell 497 Esso brand retail gas stations to five Canadian fuel distributors in a transaction valued at $2.8bn.
The move will enable the company to focus on its expanding oil sands and refining businesses.
Alimentation Couche-Tard will purchase 279 gas stations in Ontario and Quebec for $1.2bn, while 7-Eleven Canada will buy sites in Alberta and British Columbia.
Couche-Tard Global Fuels & North-East operations group president Jean Bernier said: "Imperial operates an attractive convenience and fuel network with excellent locations, well-upgraded facilities and a professional team that would complement our existing business in both Ontario and Québec.
"These sites are among the best assets in these provinces."
Other distributors include Harnois Groupe pétrolier, Parkland Fuel and Wilson Fuel.
Imperial Oil president Rich Kruger said: "We believe these agreements represent the best way for Imperial to grow in the highly competitive Canadian fuels marketing business.
"The Esso brand has a leading presence in Canada through our distributor network and strong prospects for continued growth to the benefit of our customers and shareholders."
Under the agreement, the distributors will own and operate the gas stations and Imperial plans to continue to supply fuel. The company currently operates more than 1,700 Esso retail stations in Canada.
The sale is subject to regulatory approvals and is expected to close by the end of 2016.
Image: An Esso branded service station, with On the Run convenience store, in Kanata, Ontario. Photo: courtesy of stickguy.
