Christina Lake operations. Picture: Cenovus Power
Cenovus Power has entered right into a definitive settlement to accumulate MEG Power in a money and inventory transaction valued at $7.9 billion CAD ($5.7 billion USD), inclusive of assumed debt.
The deal follows MEG’s latest rejection of a lesser takeover bid from Strathcona Sources.
The acquisition brings collectively two main SAGD oil sands producers with mixed oil sands manufacturing of over 720,000 bpd, the bottom steam-to-oil ratio and the biggest land base in the very best quality useful resource space within the basin.
Cenovus additionally acknowledged the deal consolidates adjoining, absolutely contiguous and extremely complementary belongings at Christina Lake, enabling built-in growth of the area and unlocking considerably accelerated entry to beforehand stranded useful resource.
“This transaction represents a singular alternative to accumulate roughly 110,000 barrels per day of manufacturing inside a few of the highest high quality, longest-life oil sands useful resource within the basin, which sits immediately adjoining to our core Christina Lake asset,” stated Jon McKenzie, Cenovus President & Chief Govt Officer. “The magnitude of synergies that we now have recognized makes this a compelling worth creation alternative for Cenovus shareholders. The workforce at MEG has executed a implausible job creating these belongings, and we sit up for leveraging our mixed experience and scale to drive further worth for a few years to return.”