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Cenovus to Acquire Canada Oil Rival Husky for $2.9 Billion

  • Cenovus says deal to make it less reliant on local oil price
  • Li Ka-shing entities will own about 27% of combined firm
Cenovus will own 61% of the new company while Husky will hold a 39% stake.

Cenovus will own 61% of the new company while Husky will hold a 39% stake.

Photographer: Brent Lewin/Bloomberg

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Cenovus Energy Inc. agreed to buy Husky Energy Inc. in a C$3.8 billion ($2.9 billion) all-stock deal that will combine two of the largest players in Canada’s beleaguered oil-sands industry, which is struggling after the slump in crude prices.

The transaction will create the country’s third-largest oil and natural gas producer and lead to C$1.2 billion in savings, the companies said Sunday in a statement. Following the completion of the deal, Hong Kong billionaire Li Ka-shing and CK Hutchison Holdings, the conglomerate he founded and Husky’s biggest shareholder, will together own about 27% of Cenovus.