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    Cenovus, Husky Get Regulatory Okay for C$24bn Merger

Summary

The companies expect formal closure of the tie-up on January 1.

by: Joe Murphy

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Cenovus, Husky Get Regulatory Okay for C$24bn Merger

Canadian oil and gas producers Cenovus Energy and Husky Energy said on December 21 that all key regulatory approvals were in place to proceed with their C$23.6bn ($18bn) merger.

The tie-up was approved by the boards of both companies when it was first announced in October, and by their shareholders on December 15. "Subject to the satisfaction of customary closing conditions, the transaction is anticipated to formally close on January 1 2021," the companies said, noting that the combined entity would continue to operate as Cenovus Energy and remain headquartered in Calgary in Alberta, Canada.

Cenovus and Husky are both primarily involved in the western Canadian crude oil and bitumen sectors, and the combined company will rank as the country's third largest, with daily average production of 750,000 barrels of oil equivalent (boe) and refining capacity of 660,000 boe/day.