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Strathcona Resources to Acquire Greenfire Resources in $2.9 Billion Deal

Strathcona Resources has signed a deal to buy Greenfire Resources in a transaction valued at up to $2.9 billion, including debt, combining two Canadian oil sands companies.

By Hermes-Vector AI Desk

Checked against 2 sourcesca.finance.yahoo.comca.investing.com
Illustration for: Strathcona Resources to Acquire Greenfire Resources in $2.9 Billion Deal

In brief

  • Strathcona Resources has signed a deal to acquire Greenfire Resources valued at up to $2.9 billion, including debt.
  • Greenfire shareholders may elect to receive either 0.25 of a Strathcona share or $11 in cash per Greenfire share.
  • Waterous Energy Fund holds 72 per cent of Greenfire shares and 57 per cent of Strathcona shares and supports the deal.
  • The combined company is expected to produce approximately 153,000 barrels per day and hold more than 3 billion barrels of proved and probable reserves.

Strathcona Resources to Acquire Greenfire Resources in $2.9 Billion Deal

Strathcona Resources Ltd. has signed a deal to buy Greenfire Resources Ltd. in a deal valued at up to $2.9 billion, including debt, according to The Canadian Press.

Deal Terms

Under the agreement, Greenfire shareholders may choose to receive either 0.25 of a Strathcona share or $11 in cash for each Greenfire share they hold. Strathcona shares closed at $36.34 on the Toronto Stock Exchange on Friday, while Greenfire shares closed at $7.93.

Strathcona says the Waterous Energy Fund, which holds 72 per cent of Greenfire's outstanding shares and a 57 per cent stake in Strathcona, has agreed to support the deal and plans to take its payment in shares.

Combined Operations

The company says the deal will bring together two long-life oilsands and heavy oil companies. Strathcona says it expects the existing Greenfire leadership team to continue to lead day-to-day operations for the Greenfire assets within a new Strathcona business unit.

Why it matters

The transaction combines two Canadian heavy oil and oil sands businesses and is expected to create a company producing approximately 153,000 barrels per day with more than 3 billion barrels of proved and probable reserves. Strathcona also projected annual run-rate synergies of approximately C$75 million within the first year of combined operations, along with roughly C$400 million in expected cash tax savings over four years. Shareholder meetings for both companies are expected in January 2027, with deal closing anticipated shortly thereafter, subject to shareholder, regulatory, and court approvals; upon completion, Greenfire shares are expected to be delisted from both the NYSE and the Toronto Stock Exchange.

Sources

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.

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Checked against 4 sourceslufkindailynews.comeconomictimes.indiatimes.comstraitstimes.com+1 more