AGL 39.94 Decreased By ▼ -0.06 (-0.15%)
AIRLINK 128.50 Decreased By ▼ -0.56 (-0.43%)
BOP 6.84 Increased By ▲ 0.09 (1.33%)
CNERGY 4.70 Increased By ▲ 0.21 (4.68%)
DCL 8.55 No Change ▼ 0.00 (0%)
DFML 41.00 Increased By ▲ 0.18 (0.44%)
DGKC 82.70 Increased By ▲ 1.74 (2.15%)
FCCL 33.13 Increased By ▲ 0.36 (1.1%)
FFBL 73.85 Decreased By ▼ -0.58 (-0.78%)
FFL 11.92 Increased By ▲ 0.18 (1.53%)
HUBC 109.50 Decreased By ▼ -0.08 (-0.07%)
HUMNL 14.26 Increased By ▲ 0.51 (3.71%)
KEL 5.25 Decreased By ▼ -0.06 (-1.13%)
KOSM 7.65 Decreased By ▼ -0.07 (-0.91%)
MLCF 39.25 Increased By ▲ 0.65 (1.68%)
NBP 64.21 Increased By ▲ 0.70 (1.1%)
OGDC 193.11 Decreased By ▼ -1.58 (-0.81%)
PAEL 25.69 Decreased By ▼ -0.02 (-0.08%)
PIBTL 7.33 Decreased By ▼ -0.06 (-0.81%)
PPL 153.68 Decreased By ▼ -1.77 (-1.14%)
PRL 25.48 Decreased By ▼ -0.31 (-1.2%)
PTC 17.44 Decreased By ▼ -0.06 (-0.34%)
SEARL 78.45 Decreased By ▼ -0.20 (-0.25%)
TELE 7.72 Decreased By ▼ -0.14 (-1.78%)
TOMCL 33.50 Decreased By ▼ -0.23 (-0.68%)
TPLP 8.39 Decreased By ▼ -0.01 (-0.12%)
TREET 16.35 Increased By ▲ 0.08 (0.49%)
TRG 56.70 Decreased By ▼ -1.52 (-2.61%)
UNITY 27.50 Increased By ▲ 0.01 (0.04%)
WTL 1.38 Decreased By ▼ -0.01 (-0.72%)
BR100 10,539 Increased By 94 (0.9%)
BR30 31,128 Decreased By -61.3 (-0.2%)
KSE100 98,467 Increased By 668.8 (0.68%)
KSE30 30,728 Increased By 246.8 (0.81%)

OTTAWA: Cenovus Energy Inc has agreed to buy rival Husky Energy Inc in an all-stock deal valued at C$3.8 billion ($2.9 billion) to create Canada’s No. 3 oil and gas producer as a pandemic-driven demand collapse and weak oil prices force the industry to consolidate.

The deal, announced on Sunday, is the largest in the Canadian energy sector since the start of the pandemic, and follows recent big deals in the United States.

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

Canadian companies have been under stress for six years, dating back to the last downturn, due to congested pipelines and the flight by foreign oil companies and investors due to Canada’s high production costs and emissions.

Cenovus’ deal for Husky is valued at C$23.6 billion, including debt, the companies said in a joint statement.

Cenovus said the deal would create Canada’s third-largest producer based on total company output. 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 able to produce 750,000 barrels of oil equivalent per day (BOE/d).

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.

Comments

Comments are closed.