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

·1 min read

CALGARY — 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.

This report by The Canadian Press was first published Dec. 21, 2020.

Companies in this story: (TSX:CVE, TSX:HSE)

The Canadian Press