Suncor Energy Inc Case Study
The Merger of Suncor Energy Inc
& Petro Canada Date: November 23, 2010
Deal Summary
Event | Merger | Bidder | Suncor Energy Inc | Target | Petro-Canada | Announcement Date | March 23, 2009 | Effective Date | August 1, 2009 | Type | Stock Exchange | Exchange ratio | 1.28 | Stock Price | Petro Canada- C$29.67 and Suncor- C$30.74 (as of March 20, 2009) | Premium Paid | 28% (Based on stock price at March 20, 2009) | Total Offer | C$18.43 billion |
Table of Contents
Introduction………………………………………………………………………………………...….1
Global Recession…………….…………………………………………………………………......…..1
Industry Trend……………………………………………………………………………………..…..2
Background & Motivation * Market………….……………………………………………………………………..…....3 …show more content…
Suncor is Canada’s premier integrated energy company, which is the fifth largest in North America, and has a presence globally as one of the largest independent energy firms. Its products include oil sands, which they extract bitumen from and transform it into refinery feedstock and most importantly diesel fuel. Suncor also produces natural gas, which they use as hedging against internal consumption. In addition, they are currently investing in a number of international and offshore projects; like the Libya Exploration and Production Sharing Agreements, which is supposed to double daily production, the Syria Ebla Gas Development, which would produce 80 million cubic feet per day of natural gas, and the White Rose Extensions, North Amethyst and West White Rose Satellite Extensions, which are expected to add reserves of approximately 50 million barrels.
When it comes to refining, Suncor’s operations allow its resources in Canada to flow into the North American energy market; Suncor’s refineries operate out of numerous locations including Edmonton, Alberta, Montreal-Quebec, Commerce City, Colorado, and Sarnia, Ontario. Also, it is important to mention that Suncor is a pioneer when it comes to responsible development. They operate the largest ethanol facility in Canada, which is integrated with fuel to reduce the impact on the environment. Suncor also owns four wind farms, which helps reduce carbon dioxide emissions by about 284, 000 tones every
& Petro Canada Date: November 23, 2010
Deal Summary
Event | Merger | Bidder | Suncor Energy Inc | Target | Petro-Canada | Announcement Date | March 23, 2009 | Effective Date | August 1, 2009 | Type | Stock Exchange | Exchange ratio | 1.28 | Stock Price | Petro Canada- C$29.67 and Suncor- C$30.74 (as of March 20, 2009) | Premium Paid | 28% (Based on stock price at March 20, 2009) | Total Offer | C$18.43 billion |
Table of Contents
Introduction………………………………………………………………………………………...….1
Global Recession…………….…………………………………………………………………......…..1
Industry Trend……………………………………………………………………………………..…..2
Background & Motivation * Market………….……………………………………………………………………..…....3 …show more content…
Suncor is Canada’s premier integrated energy company, which is the fifth largest in North America, and has a presence globally as one of the largest independent energy firms. Its products include oil sands, which they extract bitumen from and transform it into refinery feedstock and most importantly diesel fuel. Suncor also produces natural gas, which they use as hedging against internal consumption. In addition, they are currently investing in a number of international and offshore projects; like the Libya Exploration and Production Sharing Agreements, which is supposed to double daily production, the Syria Ebla Gas Development, which would produce 80 million cubic feet per day of natural gas, and the White Rose Extensions, North Amethyst and West White Rose Satellite Extensions, which are expected to add reserves of approximately 50 million barrels.
When it comes to refining, Suncor’s operations allow its resources in Canada to flow into the North American energy market; Suncor’s refineries operate out of numerous locations including Edmonton, Alberta, Montreal-Quebec, Commerce City, Colorado, and Sarnia, Ontario. Also, it is important to mention that Suncor is a pioneer when it comes to responsible development. They operate the largest ethanol facility in Canada, which is integrated with fuel to reduce the impact on the environment. Suncor also owns four wind farms, which helps reduce carbon dioxide emissions by about 284, 000 tones every