Amid heightened scrutiny of foreign takeovers and concerns over Canada’s economic sovereignty, Ottawa has approved the takeover of fuel refiner and retailer Parkland Corp. by Texas giant Sunoco LP. The deal, worth an estimated US$9.1 billion at the time it was announced last spring, has cleared a review under Ottawa’s foreign investment rules, the Investment Canada Act, Parkland said in a statement Tuesday. Under federal rules, Industry Minister Mélanie Joly had to determine if the deal was likely to be a “net benefit” to Canada. A decision like this typically weighs the potential influx of foreign investment cash against potential losses of autonomy, employment or domestic control in key industries. Joly’s office did not immediately return a request for comment Tuesday about the decision. “If you look at the political and economic climate right now, there’s a lot of concern about protecting Canada’s economic position, but also about jobs,” Jennifer Quaid, a corporate law professor at the University of Ottawa, said. Workers at Parkland’s Burnaby, B.C. refinery have raised concerns about job cuts while other critics have warned about the loss of domestic capacity or the remote risk of a U.S. owner shutting down a major refinery, vital for supplying fuel to British Columbians. Ottawa updated some national guidelines around foreign investment in Canadian companies last March on the heels of the U.S. imposing broad-based tariffs on Canada. Former Industry Minister Francois-Philippe Champagne characterized the move as protecting the value of domestic companies from “predatory” takeover bids. While the Sunoco-Parkland takeover deal was evaluated under federal “net benefit to Canada” provisions, and not under Ottawa’s beefed-up national security provisions, some legal experts have warned about the risk of government having broader discretion to scrutinize or block takeovers on protectionist grounds. But Quaid said she expected the government would be mindful of the broader business environment and would resist making unpredictable decisions that reduced investment confidence. “You want to send the right signal to markets that we are not making these determinations (in a) willy nilly, knee-jerk reaction,” Quaid said. “The current government, at least, based on the signals they’re sending, does not want to be seen as overly interventionist.” Last June, Parkland shareholders voted overwhelmingly in favour of the acquisition which valued the Calgary-based company at $44 per share at the time. Sunoco’s takeover represents a major milestone for a company with deep roots in Alberta. Over the past five decades, Parkland grew from a small beef outfit based in central Alberta to a giant fuel distributor and convenience store retailer with operations in more than 20 countries. What started as a single gas station in Red Deer, Alta. in 1975 has become an international chain operating under the banners of Esso, Ultramar, Pioneer, Chevron, and Fas Gas Plus, along with its On the Run convenience stores. Parkland shareholders approve Sunoco takeoverEngine Capital plans to vote against Parkland-Sunoco deal Sunoco has said it is committed to maintaining a Canadian headquarters in Calgary, as well as investing in Parkland’s Burnaby refinery. The company did not respond to a request for comment Tuesday. Email: mpotkins@postmedia.com