Cenovus Energy secures shareholder approval for $2.9bn Husky deal

Cenovus Energy’s previously announced acquisition of Husky Energy has secured approval from its shareholders.

The deal was also approved by the shareholders of Husky Energy in a separate meeting.

It comes nearly two months after the two companies agreed to merge operations in a C$3.8bn ($2.9bn) all-stock deal.

Cenovus said that more than 93% of shareholder votes favoured the merger in a special meeting, while Husky announced that more than 99% of the voters supported the merger.

The completion of the transaction still remains subject to the approval of the Court of Queen’s Bench of Alberta and other regulatory approvals.

It is expected to close in the first quarter of next year.

Once the deal is completed, the integrated oil and natural gas company will have an enterprise value of C$23.6bn ($17.97bn), inclusive of debt.

It is expected to be the third-largest oil and natural gas producer and also the second-largest refiner and upgrader in Canada.

At the time of the announcement, Cenovus president and CEO Alex Pourbaix said: “We will be a leaner, stronger, and more integrated company, exceptionally well-suited to weather the current environment and be a strong Canadian energy leader in the years ahead.

“The diverse portfolio will enable us to deliver stable cash flow through price cycles while focusing capital on the highest-return assets and opportunities. The combined company will also have an efficient cost structure and ample liquidity.

“All of this supports strong credit metrics, accelerated deleveraging, and an enhanced ability for return of capital to shareholders.”