Cenovus Energy acquires Husky Energy in an all-stock deal worth $2.9 billion

On Sunday, Cenovus Energy Inc. (CVE.TO) announced that it agreed to acquire its rival Husky Energy Inc. (HSE.TO) in an all-stock deal worth 3.8 billion CAD ($2.9 billion). The oil and natural gas company said that the move was made to establish Canada’s No. 3 oil and gas producer amid the coronavirus pandemic.

“In one fell swoop, this deal will almost completely remove our exposure to (West Texas Intermediate/Western Canada Select) differentials,” Cenovus’ Chief Executive Officer Alex Pourbaix said in an interview with analysts.

According to the company boards, the acquisition and merger deal was expected to close in the first quarter of 2021.

RBC Capital Markets and TD Securities would act as Cenovus’ financial advisors while Goldman Sachs Canada and CIBC Capital Markets would act as Husky’s financial advisors.