FILE PHOTO: Rows of steam generators line a road at the Cenovus Energy Christina Lake Steam-Assisted Gravity Drainage (SAGD) project 120 km (74 miles) south of Fort McMurray, Alberta, Canada, August 15, 2013. REUTERS/Todd Korol/File Photo
October 25, 2020
(Reuters) – Canadian oil and gas producer Cenovus Energy Inc will buy peer Husky Energy 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.
Husky shareholders will receive 0.7845 of a Cenovus share plus 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 natural gas producer with production of 750,000 barrels of oil equivalent per day of low-cost oil and natural gas.
(Corrects to Canadian dollars in headline, first and third paragraph)
(Reporting by Ann Maria Shibu in Bengaluru; Editing by Susan Fenton)