Quite the shocker IMO. I thought Suncor would be aquired by someone outside of Canada but that won't be happening now:
http://business.theglobeandmail.com/.../Business/home
Quite the shocker IMO. I thought Suncor would be aquired by someone outside of Canada but that won't be happening now:
http://business.theglobeandmail.com/.../Business/home
Not that I give a shit about big oil companies, but it will be "interesting" how everything plays out in the oilsands if this deal goes through. Specifically what they decide to do with Fort Hills. Thanks for the heads-up. I had not heard anything about this until now. The article says that an announcement may be made tomorrow. Kudos to their M&A groups for keeping it under wraps.
I just saw this as well! wow. wonder what the stock prices will be tomorrow.
Insurance Pro
sounds like its going to be an all stock deal no cash...SU is probably going to drop and PCA will have a slight gain.
Holy shit, am I the only one seeing even more job losses as the 2 integrate and streamline?
Done deal.
$15.5 Billion
http://www.google.com/hostednews/ap/...Qm-5gD973OF0G0TORONTO (AP) — Suncor Energy Inc. will acquire Petro-Canada for $15.5 billion, uniting two of Canada's biggest oil companies as the nation's energy industry retrenches.
If the deal announced Monday is approved, the combined company would have a market capitalization of about $38 billion.
That's much smaller than global heavyweights such as Exxon Mobil and ConocoPhillips, which boast market capitalizations of $326.6 billion and $55.97 billion respectively, but the company would have some of the same benefits of scale.
The companies said they could save $244 million in operating costs and $812 million in capital efficiencies each year.
Petro-Canada shares jumped 29 percent, or $6.99, to $31 in premarket trading. Suncor shares fell 29 cents to $25.
Both companies have put off projects to develop oil sands in Alberta because oil prices now are too low to make the projects viable. Alberta's once-booming oil sands sector has cooled as every major company has scrapped or delayed some expansion plans as the price of oil has plummeted from its record high last summer.
Industry officials estimate the oil sands in northern Alberta could yield as much as 175 billion barrels of oil, making Canada second only to Saudi Arabia in crude oil reserves.
Suncor, founded in 1953, is the world's second-largest oil sands producer. Both were once state-owned oil companies.
"This merger creates a made-in-Canada energy leader with the assets, cost structure and financial strength to compete globally," said Rick George, president and chief executive officer of Suncor, who will continue in those roles in the new company.
Petro-Canada common shareholders would receive 1.28 common shares of the expanded company for each share of Petro-Canada, while Suncor shareholders will receive new shares on a one-for-one basis.
The share exchange represents a 25 percent premium for Petro-Canada shares, based on a 30-day weighted average of the share price. Based on the closing price Friday, the deal values Petro-Canada at $15.5 billion
Petro-Canada shareholders will hold 40 percent of the enlarged company and Suncor shareholders will hold 60 percent. Both companies are based in Calgary.
The deal is subject to approval by shareholders of both companies and government agencies.
"The merger will be good for shareholders of both companies with reduced capital requirements, operating efficiencies and complementary integration opportunities between upstream and downstream assets," said Ron Brenneman, president and chief executive officer of Petro-Canada. He will become executive vice chairman in the merged company.
In reference to Rob Anders:
Originally posted by ZenOps
Hes not really that bad...
i think we're going to see a lot of these deals pop up in the next little while. all the nexen's/talisman's of the canadian oilpatch need to do something to keep up otherwise survival could be at stake.
wtf is this doing in real estate / finance? This should be in current events.
I guess I'm Suncor now.
I think this caught everyone by surprise as there has been no rumors or hints of anything like this happening. I'm sure at the executive level but for the rest of the company, no idea. Financially, PC is strong. I guess we'll see.
Last edited by Euro838; 03-23-2009 at 09:08 AM.
I would presume because this is finance related.Originally posted by 89coupe
wtf is this doing in real estate / finance? This should be in current events.
Isn't this section related to users personal finance and real estate questions?
^ Just because this thread isn't where you put yours, doesn't mean you need to whine and complain about it.
Anyway, back OT, I think it's a good idea for the short term anyway, bigger companies are more likely to weather the storm.
In reference to Rob Anders:
Originally posted by ZenOps
Hes not really that bad...
Regardless, I think a mod should move it the correct area.
crappy weekend boys?
Sounds like someone has a case of the mondays.
Anyways, this seems like it will be a good move except for the duplicate jobs, hopefully they dont do a crazy purge right away here.
Cos...
Yeah this should be in current events.Originally posted by 89coupe
Regardless, I think a mod should move it the correct area.
i guess im suncor to now....how does this effect our stock options, benefits, etc?
i took a flex day today, guess i'll have to see once i get into the office tomorrrow....
My goodness dude - let it go...Originally posted by 89coupe
Regardless, I think a mod should move it the correct area.
If people are invested in Suncor (which many are) then this is directly related to finance - and more specifically personal finance.
bigger doesn't mean better, short term or long term... look at some of the failing companies in the States...Originally posted by Eleanor
^ Just because this thread isn't where you put yours, doesn't mean you need to whine and complain about it.
Anyway, back OT, I think it's a good idea for the short term anyway, bigger companies are more likely to weather the storm.
J
That can be very subjective- it really is quite industry dependentOriginally posted by Mys73ri0
bigger doesn't mean better, short term or long term... look at some of the failing companies in the States...
True, but look at how many smaller companies are failing in relation to the number of big companies failing. You don't hear about the smaller ones as much though.Originally posted by Mys73ri0
bigger doesn't mean better, short term or long term... look at some of the failing companies in the States...
In reference to Rob Anders:
Originally posted by ZenOps
Hes not really that bad...