Institutional Shareholder Services (ISS) and Glass Lewis have endorsed Sunoco’s proposed US$9.1-billion takeover of Parkland Corporation.

The proxy firms’ show of support comes as Parkland shareholders are scheduled to vote on the deal Friday in Calgary.

Both ISS and Glass Lewis acknowledged that the deal has met resistance from shareholders, including Simpson Oil, which owns the largest stake in Parkland at 19.8%’s. But ISS said “there are compelling reasons to believe that this deal is the best path forward for shareholders” and a way for them to “move on at a premium” after the fuel retailer and convenience-store operator grappled with financial difficulties.

Glass Lewis said the deal offers a “credible path” as Parkland seeks to resolve its issues.

Simpson has endorsed the deal after waging a two-year boardroom battle with Parkland. The sale resulted after Simpson won a key legal victory that enabled the company to have a say in a strategic review process and Parkland’s future.

But Engine Capital, which holds a 2.5% stake in Parkland, has refused to endorse the agreement.

Parkland operates about 4,000 gas stations and electric-vehicle charging sites across Canada, the U.S., and the Caribbean. The company also owns the On the Run convenience-store chain and M&M Food Market, along with a refinery in Burnaby, B.C.

Pictured: On the Run convenience store.

Photo: Parkland