# Cenovus Acquires Athabasca Oil for $5.8 Billion

> Cenovus buys Athabasca Oil for $5.8 billion, expanding oil sands operations.
- Title: Cenovus Acquires Athabasca Oil for $5.8 Billion | Shortify
- Summary: Cenovus buys Athabasca Oil for $5.8 billion, expanding oil sands operations. Cenovus Energy Inc. agreed to purchase Athabasca Oil Corp. for $5.8 billion…
- Keywords: cenovus, athabasca oil, oil sands, canada, energy, oil sands strategy, cashes and stock deal, money, business, Acquires, Athabasca, Oil
- Source: Financialpost — https://financialpost.com/commodities/energy/oil-gas/cenovus-buy-athabasca-oil-4-billion-valuation
- Read time: 1 min
- Topics: cenovus, athabasca oil, oil sands, canada, energy, oil sands strategy, cashes and stock deal, money, business
## Deal Announcement
Cenovus Energy Inc. agreed to buy Athabasca Oil Corp. for about $5.8 billion, expanding its footprint in the Canadian oil sands.
## Purchase Terms
The Calgary-based company agreed to pay $12 per share for Athabasca in the cash-and-stock deal, adding 45,000 barrels of oil equivalent a day to output.
## Share Price Impact
The per-share value represents a 13 per cent premium to Athabasca’s closing price on Oct. 2, with Cenovus shares falling as much as 4.4 per cent and Athabasca surging 15 per cent.
## Strategic Rationale
Cenovus chief executive Jon McKenzie stated the transaction strengthens its position in one of the world’s premier oil-producing regions and is a natural extension of its oil sands strategy.
## Funding and Timeline
The cash portion, accounting for 65 per cent to 75 per cent of the transaction, will be funded with cash on hand and short-term borrowings, closing in December pending regulatory and shareholder approvals.
## Regulatory and Approval Process
The deal has been unanimously approved by both companies’ boards and is expected to close in December, pending regulatory and Athabasca shareholders’ approvals.
## Key takeaway

Cenovus Energy Inc. agreed to purchase Athabasca Oil Corp. for $5.8 billion, adding 45,000 barrels of oil equivalent per day to its output.