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Cenovus Energy to buy Husky in $23.6 billion deal

Husky Energy and Cenovus Energy have agreed to enter an all-stock transaction which will see the combined company operate as Cenovus.

The deal is worth $23.6 billion, inclusive of debt, and Husky shareholders would receive 0.7845 of Cenovus shares, plus 0.0651 of a Cenovus share purchase warrant in exchange for a Husky common share.

The merged company will be headquartered in Calgary, Alberta and will have a combined oil production of 750,000 barrels per day.

The deal is expected to close in the first quarter of 2021 at which point Cenovus CEO Alex Pourbaix will head the combined company.

“We will be a leaner, stronger and more integrated company, exceptionally well-suited to weather the current environment and be a strong Canadian energy leader in the years ahead,” he says.

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They will be the third largest oil and natural gas producer in Canada both companies note in their statements.

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