Cenovus falls after agreeing to buy Athabasca in C$5.7 billion deal
CVE•Cenovus agreed to acquire Athabasca Oil in a cash-and-stock deal valued at C$5.7 billion ($4 billion). The deal is expected to add about 45,000 barrels of oil equivalent per day to Cenovus’ production and generate C$85 million in annual savings.
1. Deal terms
Cenovus Energy agreed to acquire Athabasca Oil in a cash-and-stock deal valued at C$5.7 billion ($4 billion), and its U.S.-listed shares fell about 1% premarket. Athabasca shareholders may elect to receive C$12 in cash, 0.264 Cenovus shares, or a combination of both for each share held.
2. Production and timing
The transaction will add about 45,000 barrels of oil equivalent per day to Cenovus’ production. Cenovus expects C$85 million ($59.6 million) in annual corporate and commercial savings; both companies’ boards have approved the deal, which is expected to close in December.
