Investing.com-- Canadian oil producer Strathcona Resources (TSX:SCR) said on Sunday it had agreed to acquire Greenfire Resources (NYSE:GFR) in a transaction valued at C$2.7 billion to C$2.9 billion ($1.91 billion to $2.06 billion), combining two heavy oil and oil sands businesses to expand production.
Under the terms of the deal, Greenfire shareholders can elect to receive either 0.25 Strathcona shares per share, valued at C$9.09, or C$11 in cash, representing premiums of 15% and 39%, respectively, to Greenfire's November 6 closing price.
The transaction includes Greenfire's approximately C$550 million in net debt. Waterous Energy Fund, which owns 72% of Greenfire and 57% of Strathcona, has agreed to support the deal and elect the share option for its Greenfire holdings.
The combined company is expected to have production of about 153,000 barrels per day currently and more than 3 billion barrels of proved and probable reserves. Strathcona expects to achieve annual run-rate synergies of about C$75 million within the first year of combined operations.
Shareholder meetings are expected in January 2027, with completion anticipated shortly afterwards, subject to shareholder, regulatory and court approvals. Greenfire shares will be delisted from the Toronto and New York stock exchanges following completion.
Original Article
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