World News – CA – Husky shareholders almost unanimously approve the merger of Cenovus

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The shareholders of two competing energy companies voted to merge on Tuesday, paving the way for Cenovus Energy Inc. . The billion dollar acquisition of Husky Energy Inc. .

The two Calgary-based companies each held special general meetings to vote on the $ 3. 8 billion all-stock buyout.

The approval of the investors in both companies was great: More than 90 percent of the votes were in favor of the acquisition.

Shareholder support skips regulatory approval as the last major hurdle in the deal. The surprise deal announced in October is expected to close in the first quarter of 2021.

It comes at a crucial time in Canada’s energy sector as the collapse in oil prices and the global pandemic put pressure on the oil and gas industry.

The combined company would create Canada’s third largest oil and natural gas producer by total production.

Alex Pourbaix, CEO of Cenovus, described shareholder approval of the deal as a « crucial moment » in which the two energy companies will create a « resilient Canadian energy leader ». ”

« The past few months have been challenging for our industry, but today there is considerable reason to be optimistic, » he told shareholders.

« I am confident that our combined company will be stronger, more competitive, more efficient and more profitable than either company on its own. ”

Combining the companies results in $ 1 annual savings. 2 billion, the companies said, largely reached within the first year regardless of raw material prices.

Downsizing is expected, however, another blow to the Alberta oil and gas sector that has been hit hard by the downsizing in recent months.

A Cenovus spokesperson said the company plans to take between 20 and 25 percent of the 8. Cut 600 employees and contractors currently working in the two companies – possibly more than 2. 000 employees.

« The synergies between Husky and Cenovus are clear, » he told shareholders. “We share many similar values ​​and priorities. ”

« Husky has built a strong foundation in over 80 years, » he said. “From our humble beginnings as a small refinery, Husky has built a diverse, high-quality asset base today. We are ready to take the next step to create an even more resilient and stronger Canadian leader in integrated energy. ”

The all-stock transaction was valued at $ 23. 6 billion deal by the Calgary-based companies, taking into account the value of Cenovus and net debt, which was $ 8 at the end of the second quarter. 2 billion for Cenovus and $ 5. 1 billion for Husky.

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Cenovus Energy, Husky Energy, Mergers and Acquisitions, Thomson Reuters Corporation, Acquisition