RE:RE:RE:RE:WHY CNQ NOT ACQUIRE CR INSTEAD OF CJHe is not the CEO, he was a cofounder of CNQ and sits on its board. As far as the deal, CJ had liquidity problems and convertible debentures maturing in late December. I had a brief look at the press release and also disliked it. Diluting and among other things, looks like someone can acquire a big chunk of a company at below market price without making an offer to all shareholders. Surprised shares rallied, probably relieved and exited to see a wealthy backer.
CJ borrowed a lot a few years ago to acquire light oil assets, probably to shift production away from medium oil. As many other small companies, they weren’t ready for Covid and the collapse of oil prices. Couldn’t afford to buy an old piece of furniture from Crew. Last thing on their mind was buying heavy oil assets.