Cenovus Energy’s C$23.6 Billion Combination With Husky Energy

Stikeman Elliott LLP and Skadden Arps Slate Meagher & Flom LLP acted as Hutchison Whampoa Europe Investments S.à r.l.’s legal advisors. Bennett Jones LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as Cenovus’s legal advisors. Osler, Hoskin & Harcourt LLP, Norton Rose Fulbright US LLP and McCarthy Tétrault LLP are Husky’s legal advisors.

Cenovus Energy Inc. and Husky have entered into a definitive arrangement agreement pursuant to which Cenovus and Husky will combine in an all-stock transaction valued at $23.6 billion Canadian Dollars, inclusive of debt. The transaction has been unanimously approved by the Boards of Directors of Cenovus and Husky and is expected to close in the first quarter of 2021. 

The transaction will create a new integrated Canadian oil and natural gas company with an advantaged upstream and downstream portfolio that is expected to provide enhanced free funds flow generation and superior return opportunities for investors. The combined company will operate as Cenovus Energy Inc. and remain headquartered in Calgary, Alberta.

Founded in 2009, Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) is an integrated oil and natural gas company headquartered in Calgary, Alberta.

Husky Energy Inc. is a Canadian-based integrated energy company. It is headquartered in Calgary, Alberta, and its common shares are publicly traded on the Toronto Stock Exchange under the symbol HSE. 

RBC Capital Markets and TD Securities acted as financial advisors to Cenovus. Goldman Sachs Canada and CIBC Capital Markets acted as financial advisors to Husky. Investments S.à r.l.’s legal advisor is Marvin Yontef, Esq. 

The Skadden team included M&A partner June Dipchand (New York/Toronto; Picture) and National Security partner Michael Leiter (Washington, D.C.).

The Paul, Weiss team included corporate partners Adam Givertz and Andrew Foley and counsel Steve Centa; tax partner Robert Holo; employee benefits partner Jean McLoughlin and counsel Lisa Krausz Eisenberg; litigation counsel Rachel Fiorill and Peter Jaffe; international trade counsel Richard Elliott; and antitrust counsel Marta Kelly.

The McCarthy Tétrault LLP team included Robert Kopstein, Raj Juneja and Justin Shoemaker.

The Bennett Jones team was led by John Piasta (M&A) and included Harinder Basra, Colin Perry, Beth Riley and Brent Kraus (M&A), Beth Riley (Competition), Anu Nijhawan (Tax), Thomas McInerney and Ashley White (Energy), Mark Rasile (Banking), Carl Cunningham (Employment), Mike Theroux (Litigation) and Shawn Munro (Regulatory).

 

Involved fees earner: Harinder Basra – Bennett Jones; Carl Cunningham – Bennett Jones; Brent Kraus – Bennett Jones; Thomas McInerney – Bennett Jones; Shawn Munro – Bennett Jones; Anu Nijhawan – Bennett Jones; Colin Perry – Bennett Jones; John Piasta – Bennett Jones; Mark Rasile – Bennett Jones; Beth Riley – Bennett Jones; Michael Theroux – Bennett Jones; Ashley White – Bennett Jones; Raj Juneja – McCarthy Tétrault; Robert Kopstein – McCarthy Tétrault; Justin Shoemaker – McCarthy Tétrault; Stephen Centa – Paul Weiss Rifkind Wharton & Garrison; Richard Elliott – Paul Weiss Rifkind Wharton & Garrison; Rachel Fiorill – Paul Weiss Rifkind Wharton & Garrison; Andrew Foley – Paul Weiss Rifkind Wharton & Garrison; Adam Givertz – Paul Weiss Rifkind Wharton & Garrison; Peter Jaffe – Paul Weiss Rifkind Wharton & Garrison; Marta Kelly – Paul Weiss Rifkind Wharton & Garrison; Lisa Krausz Eisenberg – Paul Weiss Rifkind Wharton & Garrison; Jean McLoughlin – Paul Weiss Rifkind Wharton & Garrison; Robert Holo – Simpson Thacher & Bartlett; June Dipchand – Skadden Arps Slate Meager & Flom; Michael Leiter – Skadden Arps Slate Meager & Flom;

Law Firms: Bennett Jones; McCarthy Tétrault; Paul Weiss Rifkind Wharton & Garrison; Simpson Thacher & Bartlett; Skadden Arps Slate Meager & Flom;

Clients: Cenovus Energy Inc.; Husky Energy; Hutchison Whampoa Europe Investments S.à r.l.;

Sonia Carcano

Author: Sonia Carcano