Canadian oil companies Suncor, Petro-Canada agree to merge
Tuesday, 24 March 2009
MONTREAL, Mar 23 (AFP): Canadian oil companies Suncor Energy and Petro-Canada today announced a decision to merge in a transaction worth approximately 14 billion US dollars.
The new company will operate and trade under the Suncor name, they said.
"This merger creates a made-in-Canada energy leader with the assets, cost structure and financial strength to compete globally," said Rick George, who is president and chief executive officer of Suncor and who will assume the same role with the merged company.
Under the merger agreement, Petro-Canada common shareholders will effectively receive 1.28 common shares of the merged company for each common share of Petro-Canada they own and each Suncor common shareholder will receive one common share of the merged company for each common share of Suncor they own.
The exchange ratio represents an approximate 25-per cent premium for the Petro-Canada shares.
On completion of the proposed transaction, Suncor's existing shareholders will own approximately 60 per cent, and Petro-Canada shareholders will own approximately 40 per cent of the merged company, company officials said.
The transaction is still subject to approval of Suncor and Petro-Canada shareholders.
The new company will operate and trade under the Suncor name, they said.
"This merger creates a made-in-Canada energy leader with the assets, cost structure and financial strength to compete globally," said Rick George, who is president and chief executive officer of Suncor and who will assume the same role with the merged company.
Under the merger agreement, Petro-Canada common shareholders will effectively receive 1.28 common shares of the merged company for each common share of Petro-Canada they own and each Suncor common shareholder will receive one common share of the merged company for each common share of Suncor they own.
The exchange ratio represents an approximate 25-per cent premium for the Petro-Canada shares.
On completion of the proposed transaction, Suncor's existing shareholders will own approximately 60 per cent, and Petro-Canada shareholders will own approximately 40 per cent of the merged company, company officials said.
The transaction is still subject to approval of Suncor and Petro-Canada shareholders.