Gulf Canada Resources Limited

Gulf Canada Resources Limited

Gulf Canada Resources Limited was incorporated in 1906 as the British American Oil Company Limited. In 1969 Gulf Oil Corp of the US bought BA, which became Gulf Oil Canada Limited. The name, Gulf Canada Ltd, was adopted in 1978 and in July 1987 the company became Gulf Canada Resources Limited. In May 1985, in the second-largest takeover in Canadian history, the Reichmann brothers, through Olympia and York Developments Ltd of Toronto, acquired San Francisco-based Chevron Corp's 60% interest in Gulf. In 1985 Gulf acquired majority interest in Abitibi-Price Inc and by mid-1987 had 83%. In October 1986 it acquired Hiram Walker Resources Inc; by mid-1987 it had 49%.

Today Gulf has diverse interests: forest products, natural gas distribution, distilled spirits and pipelines. It has consolidated its interests in Consumers Gas Co, Hiram Walker-Gooderham & Worts and Interprovincial Pipe Line into GW Utilities. O&Y held 75% of Gulf; however, in 1992 O&Y placed these holdings in the custody of the Toronto Dominion Bank as collateral for a $2.5 billion (US) loan. O&Y's problems led to the TD and other creditors of O&Y taking over Gulf through a new entity, A&G Resources. The banks managed to sell a portion of their share to help re-capitalize the company but they remain the largest shareholder with 52%. In 1995 Gulf had revenues of $718 million, assets of $2.9 billion and 700 employees.