Bennett Jones is acting for Cenovus Energy Inc. in its combination with Husky Energy Inc. to create a new integrated Canadian oil and natural gas company. The companies have entered into a definitive arrangement agreement under which Cenovus and Husky will combine in an all-stock transaction valued at $23.6 billion, inclusive of debt.

The combined company will operate as Cenovus Energy Inc. and remain headquartered in Calgary, Alberta. It will be the third largest Canadian oil and natural gas producer and the second largest Canadian-based refiner and upgrader. 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 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).

For more information on the deal, Cenovus' news release is available here.