Cenovus Power buys Husky Power for $ 24 billion

© Reuters. FILE PHOTO: Rows of steam generators line a street at the SAGD Cenovus Energy Christina Lake project south of Fort McMurray, Alberta, Canada

(Reuters) – Canadian oil and gas producer Cenovus Energy (NYSE 🙂 Inc will become Peer Husky Energy (OTC 🙂 Inc in an all-stock transaction valued at $ 23.6 billion ($ 17.97 billion) ) including debt buy a joint statement on Sunday.

Husky shareholders will, according to the statement, receive 0.7845 of a Cenovus share plus 0.0651 of a Cenovus share purchase order in return for each Husky common share.

The combined company is expected to generate $ 1.2 billion in annual synergies and will operate as follows Cenovus Energy Inc. headquartered in Alberta, Canada, the statement said.

Alex Pourbaix, CEO of Cenovus, will serve as chief executive of the combined company. Jeff Hart, currently Husky’s chief financial officer, will become chief financial officer.

Cenovus said the combined company will be Canada’s third largest oil and gas producer, producing 750,000 barrels of oil equivalent per day of low-cost oil and natural gas.

(Corrects the Canadian dollar in the heading, first and third paragraph)

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