Husky Energy bought out by rival Cenovus (Details)

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Husky Energy Confirms Layoffs in Newfoundland and Labrador

Husky Energy is being swallowed up by rival Cenovus Energy Inc. in an all-stock deal valued at $23.6 billion, the companies announced early Sunday.

The statement said both companies’ boards of directors have approved the transaction that’s expected to close in the first quarter of next year, and has everything to do with the downturn in the industry as companies seek strategies for survival amid COVID-19.

The Calgary-based companies said the combined company will be the third largest Canadian oil and natural gas producer, based on total company production.

The announcement comes as Husky, like most petroleum producers, has been re-evaluating its investments across the board.

It’s not clear yet how the deal will affect Husky’s operations in Newfoundland and Labrador, which includes the idled West White Rose project and the Terra Nova FPSO.

The company had already laid off dozens of workers in the province earlier this month.

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