Suncor Energy acquiring Canadian Oil Sands in US$4.6 billion all-share deal
Canadian Oil Sands is a single-asset, pure-play oil-sands venture, focused on optimizing value from its 36.74% stake in the Syncrude mining project. The combination underscores Suncor's strategy to pursue counter-cyclical growth opportunities and reinforces the company's place as the top oil sands producer by volume. The agreement comes almost four months after Suncor's initial hostile bid on 5 October 2015. The original bid was priced at 0.25 Suncor shares for each Canadian Oil Sands' share. The exchange ratio was revised upwards to 0.28 in the concluding offer, as both sides came to a mutual agreement amid further oil price weakness.