Husky Energy, Cenovus Energy announce merger

By Erin Voegele | October 29, 2020

Husky Energy Inc.’s two Canadian ethanol plants will soon be under new ownership following the company’s planned merger with Cenovus Energy Inc.

Cenovus and Husky on Oct. 25 announced a transaction to create a new integrated Canadian oil and natural gas company. The companies said they have entered into a definitive arrangement under the 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. The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the first quarter of 2021.

A spokesperson for Husky Energy confirmed that the transaction will include its two ethanol plants, located in Lloydminster, Saskatchewan, and Minnedosa, Manitoba. According to the Ethanol Producer Magazine plant map, each facility has an annual production capacity of 34 MMgy.