Canadian companies Cenovus Energy and Husky Energy have received approval from shareholders to move forward with Cenovus’ $4.78 billion acquisition of the latter. The deal will turn the new company into the country’s third largest oil and gas company.
While 2020 has proven a difficult year for energy companies, rising oil prices from record low levels have provided a boost. As a result, because Cenovus will be using stock to purchase Husky, the deal value has skyrocketed as the share prices have recovered.
While there were some dissenters, the deal was approved by wide margins on both sides. About 93% of Cenovus shareholders voted in favor of the deal while almost 100% of Husky shareholders voted in favor.