$15 billion takeover would create Canada’s largest energy company
On Sunday, the Wall Street Journal reported that Calgary-based Suncor Energy Inc., Canada’s second largest oil exploration and refining company, is close to acquiring Petro-Canada in a $15 billion deal. In what amounts to a 30 per cent premium on Petro-Canada’s share price, the takeover would create Canada’s largest energy company (EnCana Corp. currently holds that title). The Canadian government, however, must approve it since legislation prohibits any single shareholder from owning more than 20 per cent of Petro-Canada, Canada’s fourth largest refiner. The WSJ piece, citing people ‘familiar with the matter,’ claimed the government is supportive. Sources in Calgary say Petro-Can is planning to make an announcement before trading begins on Monday.
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