Cenovus to Acquire Athabasca Oil in $5.7 Billion Deal

Cenovus Energy Inc. has reached an agreement to acquire Athabasca Oil Corp. in a $5.7 billion cash-and-stock transaction. The deal is expected to bolster Cenovus’s portfolio with Athabasca’s high-quality, long-life assets, according to Cenovus CEO Jon McKenzie. The acquisition is projected to add approximately 45,000 barrels of oil equivalent per day to Cenovus’s production capacity.

Under the terms of the agreement, Athabasca shareholders can choose between $12 in cash or 0.264 of a Cenovus common share for each share they own. The total cash available is capped at $4.3 billion, with up to 44.4 million Cenovus shares available under the offer. Cenovus shares closed at $46.25 on the Toronto Stock Exchange on Friday, while Athabasca shares closed at $10.58.

The deal is anticipated to close in December, subject to regulatory and shareholder approvals. Cenovus aims to leverage the acquisition to enhance performance, grow production, and create long-term value for shareholders.