The planned sale of a large number of western Canadian gas station locations won’t affect a local gas bar, restaurant and convenience story now under construction.
That’s the word from Parm Klar the owner of the Esso-branded development following the announced purchase last week by Federated Co-ops Ltd. of 181 Husky retail fuel sites, a transaction valued at $264 million.
While the location will be selling Esso-branded products, it comes under the umbrella of Husky Retail.
“My business agreement is with Husky. Whoever buys the Husky rights in the Houston area will have to keep the same contract because Husky is not the owner of Houston Esso,” said Klar.
“They only own the right to sell fuel to the site.”
In a release, Federated Co-ops Ltd. called the transaction the largest in its history.
“Once the deal is complete, FCL will transfer the sites to several independent local Co-ops across Western Canada. These new locations will strengthen our presence in Western Canada and will bring our unmatched service and support to new geographic areas,” the release indicated.
Esso sold off its retail sites in 2016 and now contracts out its name and products and services with Husky Retail having that role.
Husky Retail itself is an entity within Husky Energy which last year combined its operations with Cenovus Energy in an exchange of stock worth more than $4 billion.
In the meantime, a planned opening of Houston Esso is temporarily on hold, said Klar.
The pandemic and its ongoing effects put construction behind by two to three months, he said.
“We can’t pave the parking lot in the winter so we are hoping to be open in spring now,” Klar said.