Suncor, Petro-Canada announce merger
- Suncor Energy will acquire Petro-Canada in a deal worth $15 billion,
- Combined worth of $43 billion
- Petro-Canada equity holders will receive 1.28 shares for each Petro-Canada share, giving investors a 25% premium
- The merger would cut $1.3 billion in annual costs through reduction in capital spending and job cuts
- Oil sands operations: Suncor at 228,000 barrels/day, Petro-Canada at 59,900
- Conventional oil: Suncor at 3,100 barrels/day, Petro-Canada at 240,800
- Under the Petro-Canada Public Participation Act, no shareholder or company can legally hold more than 20% of Petro-Canada’s shares.
March 23, 2009, 10:46pm
