Dec 21, 2020
Approvals in hand for Cenovus buyout of Husky, now expected to close Jan. 1
The Canadian Press
Cenovus plans sweeping job cuts amid Husky deal
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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.
![The BP-Husky Toledo Refinery stands at sunset in Oregon, Ohio, U.S., on Tuesday, June 13, 2017. Global natural gas production stagnated last year as lower prices damped U.S. output for the first time since the shale boom started. Gas production was \"adversely affected by low prices, growing by only 0.3 percent,\" BP Plc said in its annual Statistical Review.](/polopoly_fs/1.1069032.1525108016!/fileimage/httpImage/image.jpg_gen/derivatives/landscape_140/the-bp-husky-toledo-refinery-stands-at-sunset-in-oregon-ohio-u-s-on-tuesday-june-13-2017-global-natural-gas-production-stagnated-last-year-as-lower-prices-damped-u-s-output-for-the-first-time-since-the-shale-boom-started-gas-production-was-adversely-affected-by-low-prices-growing-by-only-0-3-percent-bp-plc-said-in-its-annual-statistical-review.jpg "The BP-Husky Toledo Refinery stands at sunset in Oregon, Ohio, U.S., on Tuesday, June 13, 2017. Global natural gas production stagnated last year as lower prices damped U.S. output for the first time since the shale boom started. Gas production was \\"adversely affected by low prices, growing by only 0.3 percent,\\" BP Plc said in its annual Statistical Review., Photographer: Luke Sharrett/Bloomberg/Bloomberg")
