Suncor bids on Canadian Oil Sands Suncor looks to take advantage of oil price rout with $4.3B takeover of Canadian Oil Sands
The CEO of Suncor Energy says its proposed $4.3-billion takeover of Canadian Oil Sands Ltd. (COS) is a good deal for shareholders and takes advantage of the collapse in global energy prices.
“Our view is crude prices are lower for longer,” Steve Williams tells BNN. “The beauty of this offer is right through the cycle Suncor’s business model generates cash. So we think the offer is compelling for Canadian Oil Sands shareholders – even as the market is going through this difficult time.”
Calgary-based Suncor is offering $4.3 billion worth of its own shares and would take on about $2.3 billion of debt owed by COS, making the total transaction worth $6.6 billion. The offer value is also 43 per cent above the market value for Canadian Oil Sands, based on closing price on the Toronto Stock Exchange as of Friday.