"Oilsands giant Cenovus Energy Inc. has completed its takeover of MEG Energy Corp. The two companies had neighbouring properties in the oilsands at Christina Lake, south of Fort McMurray, Alta. With the purchase, Cenovus gets another 110,000 barrels a day of production from what had been MEG's flagship operation. The deal was worth more than $8.6 billion in cash, shares and assumed MEG debt. MEG shares are expected to be delisted from the TSX on Friday."
"The acquisition's closing marks the end of a bitter saga that saw Cenovus face off against rival bidder Strathcona Resources Ltd., which ultimately supported a sweetened Cenovus offer. MEG Energy reports $159M in Q3 profit, down from last year "The addition of MEG assets and people will have an immediate positive impact on Cenovus," said Cenovus CEO Jon McKenzie. "The strategic fit is exceptional, the assets are of the highest quality and the synergies we have identified will create significant value over both the short and long term.""
Cenovus Energy completed the takeover of MEG Energy, acquiring neighbouring oilsands properties at Christina Lake near Fort McMurray, Alberta. The acquisition adds roughly 110,000 barrels per day of production from MEG's flagship operation. The transaction was valued at more than $8.6 billion in cash, shares and assumed debt. MEG shares are expected to be delisted from the TSX. The closing concluded a competitive bidding process involving Strathcona Resources, which backed a sweetened Cenovus offer. MEG reported third-quarter profit of $159 million, down from the previous year. Cenovus expects immediate benefits and identified synergies to create short- and long-term value.
Read at www.cbc.ca
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