Canadian Oil Sands Ltd. is going to be integrated immediately into Suncor Energy Inc. after minority shareholders voted in favor of the takeover.
The largest owner of the Syncrude oil sands mine is going to be delisted from the Toronto stock market on Wednesday following the vote on Monday. Suncor presently has to figure out ways to lessen operating costs and share some operations using its other oil-sands sites, said Steve Reynish, Suncor’s v . p . of strategy. Imperial Oil Ltd. operates the Syncrude venture.
“The operator has already done a good job of a little costs out of the system and that we think there’s more room to choose that,” Reynish said in a briefing following the meeting that lasted Fifteen minutes. “We’re very pleased with Imperial as the operator.”
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Suncor succeeded in winning over resistant Canadian Oil Sands management and shareholders after sweetening its offer earlier this year, carrying out a war of words between the companies over the fate of Syncrude. Suncor made two offers before a hostile bid in October and lastly secured Canadian Oil Sands management’s green light for that takeover in January.
Suncor paid Canadian Oil Sands shareholders 0.28 Suncor shares for each from the target. Canada’s largest oil producer by market value owned 84 percent of Canadian Oil Sands shares at the start of the meeting.
“There are many opportunities coming on the friendly side” for additional takeovers, Reynish said, declining to supply any details or possible targets.
Bloomberg.com
