TORONTO—Canadian oil-sands producer
Cenovus Energy Inc.
Husky Energy Inc.,
controlled by Hong Kong billionaire Li Ka Shing, agreed to merge in an all-stock deal valued at 23.6 billion Canadian dollars, equivalent to $18 billion.
The deal, unveiled early Sunday, will create the third-largest oil-and-natural-gas producer in Canada and the second-largest Canadian refiner. Husky shareholders will receive a roughly 21% premium to their shares, the companies said.
The deal is expected to close in the first quarter of 2021 and will leave Cenvous shareholders with 61% of the combined business. Husky Shareholders, including Mr. Li’s Hutchison Whampoa conglomerate, will own the remainder.
“We will be a leaner, stronger and more integrated company, exceptionally well suited to weather the current environment and be a strong Canadian energy leader in the years ahead,” said Alex Pourbaix, Cenovus’s CEO, who will remain in that role after the merger.
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