Canada's Strathcona to buy Greenfire in up to $2.1bn deal
Canada's Strathcona Resources said on Sunday it would acquire Greenfire Resources in a deal valued at about C$2.7-billion ($1.91-billion) to C$2.9-billion, including debt, as the oil producer expands its presence in Alberta's oil sands region.
Under the agreement, Greenfire shareholders can elect to receive either 0.25 Strathcona shares or C$11.00 in cash for each Greenfire share, the company said.
The cash offer represents a nearly 39% premium to Greenfire's November 6 closing price, while the share option implies a nearly 15% premium.
The deal combines two Alberta-focused oil sands producers and is expected to close in early 2027, subject to shareholder and regulatory approvals.
Waterous Energy Fund, which owns about 72% of Greenfire and 57% of Strathcona, has agreed to support the transaction and will elect to receive Strathcona shares for its Greenfire holdings.
Depending on elections by Greenfire shareholders other than WEF, Strathcona expects to issue about 43-million to 60-million shares and pay up to C$740-million in cash.
Including Greenfire's net debt of about C$550-million as of September 30, the deal values the company at up to C$2.9-billion.
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