Cenovus and Husky Combine in $18 Billion Transaction

Paul, Weiss is representing long-time client Cenovus Energy in its combination with Husky Energy in an all-stock transaction valued at C$23.6 billion ($18 billion), including debt. The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions.

The combined company, which will operate as Cenovus Energy and remain headquartered in Calgary, Alberta, will be the third-largest Canadian oil and natural gas producer, based on total company production, with about 750,000 barrels of oil equivalent per day (BOE/d) of low-cost oil and natural gas production. It will be the second-largest Canadian-based refiner and upgrader, with total North American upgrading and refining capacity of approximately 660,000 barrels per day (bbl/d).

The Paul, Weiss team includes corporate partners Adam Givertz and Andrew Foley and counsel Steve Centa; tax partner Robert Holo; employee benefits partner Jean McLoughlin and counsel Lisa Krausz Eisenberg; litigation counsel Rachel Fiorill and Peter Jaffe; international trade counsel Richard Elliott; and antitrust counsel Marta Kelly.