Cenovus Energy Completes Acquisition Of Husky Energy

The previously announced $23.6 billion all stock transaction between Cenovus Energy (TSX: CVE) and Husky Energy (TSX: HSE) has completed, with Husky now being a wholly owned subsidiary of Cenovus. Husky shareholders received 0.7845 of a Cenovus common share and 0.0651 of a Cenovus common share purchase warrant for each share of Husky previously held.

The transaction has seen the establishment of the third largest crude oil and natural gas producer within Canada. This is absed on total company production, which sits at 750,000 barrels of oil equivalent per day. The firm is also reportedly the second largest refiner and upgrader, with a total capacity of 660,000 barrels per day.

The company will continue to trade as Cenovus on the Toronto Stock Exchange as well as the New York Stock Exchange. Warrants have also been listed for trading, along with Series 1, Series 2, Series 3, Series 5 and Series 7 preferred shares of the issuer. Husky common shares are to be delisted at the close of markets tomorrow.

Furthermore, while Husky is currently a wholly owned subsidiary, this is subject to change upon the completion of a currently planned amalgamation between the two firms. Once completed, Cenovus will directly assume Husky’s long term notes and obligations. The firms headquarters is to remain in Calgary, Alberta.

Further details on future plans of the company are expected to be released at the end of the month within its 2021 capital budget and updated corporate guidance.

Cenovus Energy last traded at $7.75 on the TSX.


Information for this briefing was found via Sedar and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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