Canadian oil company Suncor will buy rival Canadian Oil Sands for Can$6.6 billion (US $4.55 billion) in stocks, the two announced Monday, ending a three-month stand-off. As part of the deal, Suncor agreed to raise its initial hostile bid from 0.25 to 0.28 of its own shares for one Canadian Oil Sands (COS) share. This amount takes into account Canadian Oil Sands debt, which is valued at Can$2.4 billion.
Canada's largest petroleum producer, Suncor had launched a hostile bid in October for COS in order to get its hands on the latter's only asset - a 36.7 percent stake in the Syncrude consortium which owns western Canada's largest oil sands deposit. Suncor already has a 12 percent stake in the consortium, which includes six other oil companies including ExxonMobil through its Canadian subsidiary Imperial Oil.
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