Husky Energy

History

2020: Cenovus purchased Husky Energy for $2.9 billion

At the end of October, 2020 petrogas the giant Cenovus Energy announced purchase of the competing Husky Energy company for $2.9 billion which fell into a difficult financial position in the conditions of a coronavirus pandemic COVID-19. At the same time accident was about to happen within six years when because of congestion of pipelines and high production costs investors and foreign firms refused to develop oil and gas business of century To Canada.

Consolidation will allow the Canadian industry to reduce costs, the chief executive of Institute of the power researches ARC Jackie Forrest considers. He also added that transactions in this industry only begin. Anyway, but thanks to new acquisition Cenovus will become the large producer owning oil refineries as in Canada, and the USA.

The oil and gas giant Cenovus purchased the competitor of Husky Energy for $2.9 billion

The Husky oil refinery in Wisconsin is in process of reconstruction after accident of 2018 during which it was strongly damaged by explosion and the fire. Because of accident at the plant 36 people suffered, and the most part of the city of Superior where it is located, was evacuated because of threat of poisoning.

After closing of the transaction shareholders of Cenovus will receive 61% of shares of the united company, and shareholders of Husky will control other packet. In particular, the Hong Kong company Hutchison Whampoa will own 15.7% of stocks of the new company as it is already the largest shareholder of Husky from shares of 40.2%.

Acquisition of Husky will become the largest transaction "merges and absorption" in the oil and gas industry for the last four years. Other large deals happened in the first quarter 2017 when Cenovus purchased assets of ConocoPhillips, and Canadian Natural purchased assets at Shell and Marathon Oil. As a result of the new transaction Cenovus will become the third largest oil and gas producer in Canada after Canadian Natural Resources and Suncor Energy.^[1]

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