Medicine Hat News

Approvals in hand for Cenovus buyout of Husky, now expected to close Jan. 1


Cenovus Energy Inc. says it has all key regulatory approvals in place to go ahead with its friendly takeover of oilsands rival Husky Energy Inc.

The all-shares deal was approved by shareholde­rs of both companies last week.

The offer by Cenovus to issue 0.7845 of a Cenovus share plus 0.0651 of a share purchase warrant in exchange for each Husky share was valued at $3.8 billion when announced in late October.

Cenovus shares, however, have gained 55 per cent since then as oil prices rise. The companies didn’t provide an updated deal value in a joint news release on Monday.

The transactio­n is anticipate­d to formally close on New Year’s Day and the combined company is to continue to operate as Cenovus, with headquarte­rs in Calgary.

The combinatio­n is expected to create annual savings of $1.2 billion, the companies have said, to be achieved in part by cutting between 20 and 25 per cent of the 8,600 employees and contractor­s working at both energy firms.

Newspapers in English

Newspapers from Canada