Canada’s Cenovus Energy to buy Husky Energy for $18 billion By Reuters


© Reuters. FILE PHOTO: Rows of steam generators line a road at the Cenovus Energy Christina Lake SAGD project south of Fort McMurray, Alberta, Canada

By Ann Maria Shibu

(Reuters) – Canadian oil and gas producer Cenovus Energy (NYSE:) Inc will buy peer Husky Energy (OTC:) Inc in an all-stock transaction valued at C$23.6 billion ($17.97 billion), inclusive of debt, the companies said in a joint statement on Sunday.

The deal is the latest sign of consolidation in the energy industry following the collapse of oil prices.

Earlier this month Concho Resources (NYSE:) Inc agreed to being taken over by ConocoPhillips (NYSE:) for $9.7 billion. That followed Chevron Corp (NYSE:)’s $4.2 billion purchase of Noble Energy (NASDAQ:).

Cenovus’ deal for Husky implies a transaction equity value for Husky of about C$3.8 billion and a transaction enterprise value of about C$10.2 billion, according to the statement.

Husky shareholders will receive 0.7845 of a Cenovus share and 0.0651 of a Cenovus share purchase warrant in exchange for each Husky common share, according to the statement.

The combined company is expected to generate annual synergies of C$1.2 billion and will operate as Cenovus Energy Inc with headquarters in Alberta, Canada, the statement said.

Cenovus CEO Alex Pourbaix will serve as chief executive of the merged company with Jeff Hart, currently Husky’s finance chief, becoming chief financial officer.

Cenovus said the combined company will be the third largest Canadian oil and producer with production of 750,000 barrels of oil equivalent per day of low-cost oil and natural gas.

The transaction has been unanimously approved by the boards of directors of Cenovus and Husky and is expected to close in the first quarter of 2021, the companies said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *