Suncor
Industryweek 10159 Suncor
Industryweek 10159 Suncor
Industryweek 10159 Suncor
Industryweek 10159 Suncor
Industryweek 10159 Suncor

Suncor Raises Bid, Buys Rival Canadian Oil Sands

Jan. 18, 2016
Suncor had launched a hostile bid in October for Canadian Oil Sands to get its hands on the latter's 36.7% stake in the Syncrude consortium that owns western Canada's largest oil sands deposit.

MONTREAL - Canadian oil company Suncor (IW 1000/125) will buy rival Canadian Oil Sands for Can$6.6 billion (US$4.55 billion) in stocks, the two announced Monday, ending a three-month standoff.

As part of the deal, Suncor agreed to raise its initial hostile bid from 0.25 to 0.28 of its own shares for one Canadian Oil Sands (COS) share.

This amount takes into account Canadian Oil Sands debt, which is valued at Can$2.4 billion.

Canada's largest petroleum producer, Suncor had launched a hostile bid in October for COS in order to get its hands on the latter's only asset -- a 36.7%  stake in the Syncrude consortium that owns western Canada's largest oil sands deposit.

Suncor already has a 12% stake in the consortium, which includes six other oil companies including ExxonMobil through its Canadian subsidiary Imperial Oil.

After initially spurning Suncor's advances, COS called the latest offer "fair" and is recommending it to shareholders.

The acquisition comes amid plunging oil prices and consolidation in Alberta oil sands, the third largest oil reserve in the world.

Copyright Agence France-Presse, 2016

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!