⁍ Cenovus Energy’s acquisition of Husky Energy creates a new Canadian-owned major oil producer.
⁍ The C$3.8 billion ($2.9 billion) combination announced Sunday may pressure peers to get bigger or sell.
⁍ Pandemic travel restrictions have crushed demand for jet fuel and gasoline.
– Canada’s Husky Energy and Cenovus Energy have agreed to a merger that will create the country’s third-largest oil producer, the AP reports. The all-stock deal announced Sunday is valued at about $3.3 billion, or about C$38 per Husky share, based on Cenovus’ Friday closing price. The new company will be called Cenovus Energy and be headquartered in Calgary, with Husky CEO Rob Peabody as CEO and Cenovus CEO Alex Pourbaix as president and CEO. The deal, which still needs the approval of Husky shareholders and regulators, is the biggest in Canada’s oil and gas industry since 2014, when the country’s oil and gas prices were much higher, Reuters reports.
Source: https://www.reuters.com/article/us-husky-energy-m-a-cenovus-energy-analy/analysis-cenovus-husky-deal-creates-new-canadian-oil-major-stokes-hunger-for-deals-idUSKBN27B0WQ