Cenovus takeover candidate?Accordingly to an article from Motley Fool:
Biggest issue that impacts a buyout is the pipeline constraint. I wonder how much extra refinery capacity either Suncor or Imperial has, if they have ample then it would make sense with Cenovus. Everyone knows that Cenovus has best-in-class regarding oil assets and costs which are very attractive to other large players, but the list to buy out Cenovus is very small. I don't think CNQ can buy out Cenovus. It would be nice for a foreign company, but given Canadian poli I doubt it so it would be a made in Canada attempt, if any.
Cenovus Energy (TSX:CVE)(NYSE:CVE)
Cenovus spent $17.7 billion to buy out its U.S. partner ConocoPhillips in 2017. The deal gave Cenovus control of its vast oil sands resources and came with strategic assets in the Deep Basin plays.
The market didn’t like the deal, and pipeline constraints and weak oil prices have made things worse, sending the stock down below $9 per share. This puts the market capitalization at just under $11 billion. Suncor or Canadian Natural Resourcesare large enough to take a run at Cenovus, but it would be a big bet once you factor in the cost of covering the debt obligations. Imperial Oil, however, could be a more likely acquirer as it is majority controlled by U.S. energy giant ExxonMobil.