Cenovus to Acquire Athabasca Oil in $5.7-Billion Deal

Cenovus Energy (CVE-T) announced on Monday that it will acquire Athabasca Oil (ATH-T) in a $5.7-billion cash-and-stock deal. The transaction, which includes both cash and stock, will significantly expand Cenovus’s oil sands operations in Alberta. The acquisition is expected to add about 45,000 barrels of oil equivalent per day to Cenovus’s production, boosting its long-life oil sands assets near its existing operations.

Under the terms of the agreement, Cenovus will acquire all outstanding Athabasca shares for $12 per share. This offer includes a mix of cash and Cenovus stock and represents a premium of approximately 13.4% over Athabasca’s last closing price of $10.58 on Friday. The company anticipates that the deal will generate about $85 million in annual savings and other benefits.

The acquisition highlights Cenovus’s strategy to strengthen its position in the oil sands sector, a key area for long-term production growth. The transaction is subject to regulatory approvals and other customary closing conditions.