Cenovus to Acquire Athabasca Oil for C$5.7 Billion in Cash-and-Share Deal

Cenovus Energy Inc. agreed to acquire Athabasca Oil Corp. at an enterprise value of C$5.7 billion ($4 billion), the company said Monday, extending a wave of consolidation among Canadian oil sands producers. The cash-and-share takeover adds roughly 45,000 barrels of oil equivalent per day to Cenovus's output. The per-share offer represents a 13% premium to Athabasca's closing price on Oct. 2. Cash will comprise 65% to 75% of consideration, funded by cash on hand and short-term borrowings. Both boards unanimously approved the deal, which is expected to close in December, subject to regulatory and Athabasca shareholder approvals. Cenovus's $4 billion net-debt target remains unchanged. Canadian producers have pursued multiple deals as Ottawa seeks to expand output and fill new pipelines to boost Asian exports and reduce reliance on the US.