The Canadian oil and gas producer Cenovus has acquired its rival Husky Energy for CAD3.8bn (US$2.9bn) to create a new integrated oil and natural gas company in Canada. The two companies have entered into a definitive arrangement agreement under which Cenovus and Husky will combine in an all-stock transaction valued at CAD23.6bn (US$17.9bn), inclusive of debt. The transaction, which was approved by both boards of directors, should close by early 2021.
The combined company will be the third largest Canadian oil and natural gas producer, with about 750,000 boe/d of oil and natural gas production, and the second largest Canadian refiner and upgrader, with total North American upgrading and refining capacity of approximately 660,000 bbl/d. In addition, the new company will have access to about 265,000 bbl/d of current takeaway capacity out of Alberta on existing major pipelines and owns 16 mb/d of crude oil storage capacity.