CALGARY, A.B. – A major merger could be in the works in Canada’s oil patch.
Husky Energy Inc. is making a bid to acquire MEG Energy Corp. in a transaction valued at $6.4 billion.
In a statement issued Sunday afternoon, Husky says the proposed merger “will create a stronger Canadian energy company.”
The new, Calgary-based operation will have the capacity to produce more than 400-thousand barrels of oil equivalent per day.
Husky says the proposal has been unanimously approved by its board of directors and will be open for acceptance until Jan. 16.
The company expects the deal to close in the first quarter of 2019, subject to regulatory approval.
(THE CANADIAN PRESS)