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Cenovus, Husky get key approvals for near C$6 bln proposed merger

Published 2020-12-21, 09:11 a/m
© Reuters.

Dec 21 (Reuters) - Cenovus Energy Inc CVE.TO and Husky Energy Inc HSE.TO have received all key regulatory approvals required for their proposed merger to create Canada's No. 3 oil and gas producer, the companies said on Monday.

Last week, the deal of about C$6 billion ($4.66 billion) was approved by shareholders of both the companies. recent recovery in oil prices has helped energy shares, boosting the value of the all-stock transaction by about 60% from its initial C$3.8 billion valuation in October, when the deal was first announced.

The deal, expected to close on Jan 1, comes amid a pandemic-driven demand collapse and weak oil prices which has forced the industry to consolidate. = 1.2879 Canadian dollars)

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