Cenovus CEO Alex Pourbaix announces a multi-year initiative focused on Indigenous communities near the company’s oilsands operations in northern Alberta, at a news conference in Calgary, Alta., Thursday, Jan. 30, 2020.THE CANADIAN PRESS/Jeff McIntosh
Shareholders of two rival energy companies voted overwhelmingly in favour of joining forces today, clearing the way for Cenovus Energy Inc.’s $3.8-billion friendly takeover of Husky Energy Inc.
The endorsement by investors of both Calgary-based companies was resounding, with more than 90 per cent of votes cast in favour of the acquisition.
Cenovus CEO Alex Pourbaix says the vote is a “defining moment” for the energy firms that will create a stronger, more competitive, efficient and profitable company.
The acquisition comes at a pivotal time in Canada’s energy sector as the collapse in oil prices and global pandemic puts pressure on the oil and gas industry.
The combined company would create the third-largest Canadian oil and natural gas producer by total production.
The transaction announced in October is expected to close in the first quarter of 2021, pending regulatory approvals.
This report by The Canadian Press was first published Dec. 15, 2020.
The Canadian Press