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Canada: Husky Energy makes US$6.4b bid for MEG Energy

By  |  October 1, 2018
Husky Energy is making a hostile bid to acquire MEG Energy in a transaction valued at US$6.4 billion, reported Reuters. In a statement Husky stated the proposed merger “will create a stronger Canadian energy company.”
“This is a real hand-in-glove sort of deal. It just fits together extremely well,” Husky CEO Rob Peabody said on a conference call with analysts.Husky’s bid for highly indebted MEG, which hired a new CEO less than two months ago, is a bet that MEG’s production assets will be lucrative once price differentials return to normal. Even so, some investors own Husky shares for its low exposure to heavy oil differentials and may be disappointed by a bid that increases such risks, analysts said.

Full Content: Reuters
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