Cenovus Energy Inc. announced on Monday it will acquire the remaining 50 per cent interest in BP Plc’s Toledo refinery in an all-cash deal worth US$300 million, plus the value of inventory.

Cenovus has owned the other 50 per cent of the refinery since it acquired Husky Energy last year.

One analyst at Eight Capital estimated the value of the inventory could be between $100 million to $150 million at current prices.

The deal will help the Calgary-based energy giant execute on its longer-term strategy of bolstering its refining capabilities. The two companies have also signed a multi-year product supply agreement.

It will also expand Cenovus’ footprint in the United States.

“Fully owning the Toledo Refinery provides a unique opportunity to further integrate our heavy oil production and refining capabilities,” Alex Pourbaix, president and chief executive officer of Cenovus, said in a press release.

“Operating the refinery will open up additional synergies and capital efficiency opportunities, including connectivity with our nearby Lima Refinery. This transaction solidifies our refining footprint in the U.S. Midwest and increases our ability to capture margin throughout the value chain,” he added.

The transaction is set to close by the end of 2022.

-- With files from Michelle Zadikian