CALGARY, Alberta -- To facilitate a $40 billion merger with Petro-Canada, Suncor Energy Inc. must sell one-quarter of its Sunoco-branded gas stations in Ontario after taking over Petro-Canada’s retail network, the Canadian Competition Tribunal said Wednesday, according to a report by The Calgary Herald. Sunoco will lose 70 of its 272 retail locations in Ontario, while 34 Petro-Canada stations will be sold under terms of the consent agreement filed under the Competition Act.

The merger of the two companies formally took effect August 1, said the report.

Suncor spokesperson Victoria Barrington told the newspaper that the locations were negotiated and agreed to with the consent of government representatives, who will appoint a monitor to oversee the sale. The company is required to make “reasonable commercial efforts” to sell the identified stations and terminals to qualified buyers during an initial sale period to be completed within an undisclosed period of time. Any “residual assets” that remain unsold following the initial period will be disposed of at the sole discretion of an appointed trustee.

The consent agreement further requires Suncor to supply the sold stations with equivalent volumes of refined products at similar prices and terms. In addition, it won’t be able to re-acquire the stations through any direct or arm’s length subsidiaries for at least 10 years.

Suncor’s merger with Petro-Canada has created the country’s largest integrated oil company that both produces and refines oil and gas, which it sells through 1,000 retail outlets from coast to coast.

Watch for details in tomorrow's CSP Daily News.