CALGARY — Cenovus Energy has agreed to acquire Athabasca Oil Corporation in a cash-and-share transaction carrying an implied enterprise value of C$5.7 billion.

The companies announced the definitive arrangement Monday. Cenovus said the acquisition would add about 45,000 barrels of oil equivalent per day, including thermal production close to its existing Christina Lake, May River and Thornbury assets in Alberta’s McMurray region.

Offer values Athabasca shares at C$12

Athabasca shareholders may elect to receive C$12 in cash, 0.264 of a Cenovus share, or a combination for each Athabasca share, subject to proration. The aggregate consideration is expected to consist of 65 to 75 per cent cash and 25 to 35 per cent Cenovus shares.

Athabasca said the C$12 purchase price represents a 14 per cent premium to its 20-day volume-weighted average trading price. Its board unanimously recommends that shareholders approve the agreement.

Approvals still required

The transaction requires approval from Athabasca shareholders, the Alberta Court of King’s Bench, regulators and stock exchanges, including review under Canada’s Competition Act.

A special shareholder meeting is expected in late November. If the conditions are met, the companies expect the transaction to close in December 2026.

Sources: Reuters, October 5; Athabasca Oil Corporation announcement, October 5.

Lead image: Cenovus Energy corporate logo via Wikimedia Commons; public-domain text logo. The logo identifies the acquiring company and is not a photograph of the transaction’s assets.