The company's pre-COVID hope to use M&A; to move away from its former parent appears unlikely to come together as hoped.
Boos rained down on Cameron Smith after what is likely to be his final game of NRL.
(Bloomberg) -- Cenovus Energy Inc. agreed to buy Husky Energy Inc. in a C$3.8 billion ($2.9 billion) all-stock deal that will combine two of the largest players in Canada’s beleaguered oil-sands industry, which is struggling after the slump in crude prices.The transaction will create the country’s third-largest oil and natural gas producer and lead to C$1.2 billion in savings, the companies said Sunday in a statement. Following the completion of the deal, Hong Kong billionaire Li Ka-shing and CK Hutchison Holdings, the conglomerate he founded and Husky’s biggest shareholder, will together own about 27% of Cenovus.Like most of their industry peers, Cenovus and Husky are currently losing money following the crash in oil demand due to the pandemic. But even before the devastating impact of Covid-19, the Alberta oil sands had already lost their luster due to a chronic lack of pipeline capacity to export crude. That has forced producers there to accept hefty price discounts.Husky shareholders will receive 0.7845 of a Cenovus share and 0.0651 of a Cenovus share purchase warrant in exchange for each Husky common share.That represents a 21% deal premium, excluding the warrants. The takeover is valued at C$23.6 billion when debt is included.The oil sands also face increased environmental scrutiny arising from their carbon intensity, which makes the deposits more polluting to exploit than conventional reserves or shale. International oil majors including Norway’s Equinor ASA, France’s Total SA and Houston-based ConocoPhillips have either left or reduced their presence in Canada in recent years.Debt ProblemsCenovus’s purchase of Conoco’s oil sands assets in 2017 left the Calgary-based company with heavy debts, magnifying its exposure to tumbling Canadian heavy oil prices. Its shares have fallen 72% since the deal was announced and 75% over five years. Husky’s shares are down 85% over five years.Buying Husky will boost Cenovus’s production to about 750,000 barrels a day of oil equivalent from about 475,000 now. But perhaps more importantly, it will gain substantial downstream assets, namely additional refinery and pipeline capacity.That will equip Cenovus to refine and upgrade 70% of its crude at its own refineries. The company says that will leave it less exposed to Western Canada Select, the local benchmark price, which usually trades at a discount of more than $10 a barrel to West Texas Intermediate, partly because of pipeline constraints. The Alberta government has even imposed production limits to keep the size of the discount in check, though it plans to lift those restrictions in December. ‘More Resilient’The merged company will be cash-flow positive “right out the gate,” Cenovus Chief Executive Officer Alex Pourbaix said in an interview. According to the statement announcing the deal, the company will break-even at $36 a barrel for WTI crude. That’s seen falling to $33 by 2023. WTI closed Friday at $39.85.“The combined entity is far more resilient,” Husky CEO Robert Peabody said in the interview. “We will deleverage faster.”Cenovus, which is rated Ba2 by Moody’s Investors Service, aims to be an investment-grade borrower, executives said during a call with analysts Sunday. The company said the deal will help it create an “accelerated path” to cutting debt to less than two times Ebitda within 24 months.“Nobody should be surprised if non-core assets are sold,” Pourbaix said in the interview. Husky’s retail business, which includes gas stations and travel centers across most of Canada, is a division “we will take a look at.”Cenovus and Husky started their “on-and-off again” merger discussions during the pandemic, with a more concentrated effort to reach an agreement over the last couple of months, Pourbaix said.The deal is expected to close in the first quarter of 2021, after which Cenovus will have about C$12 billion in net debt and C$8.5 billion in committed credit facilities from a broad banking syndicate.It’s the largest deal in the Canadian oil industry since Husky’s attempted C$2.75 billion hostile takeover bid for MEG Energy Corp. Husky abandoned that transaction in January 2019 after failing to win enough shareholder support.U.S. DealsThe C$1.2 billion in savings comprise C$600 million from reduced capital spending and C$600 million in corporate and operating cost cuts, including job reductions. Cenovus will continue to operate under that name, with its headquarters remaining in Calgary.The tie-up also follows a recent flurry of oil and gas deals south of the border that’s shaking up the U.S. shale industry. Just last week, ConocoPhillips agreed to buy Concho Resources Inc. for $9.7 billion takeover and Pioneer Natural Resources Co. agreed to acquire Parsley Energy Inc. for $4.5 billion. EQT Corp., the biggest producer of U.S. natural gas, is also seeking to acquire rival CNX Resources Corp., people familiar with the matter said last week.RBC Capital Markets and TD Securities are Cenovus’s financial advisers on the deal and Bennett Jones LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are its legal advisers. Goldman Sachs Group Inc. and CIBC Capital Markets are Husky’s financial advisers and Osler, Hoskin & Harcourt LLP and Norton Rose Fulbright US LLP are its legal advisers.(Updates with information on Alberta production limits in ninth paragraph. An earlier version corrected spelling of typographical error in headline)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Britain's Tao Geoghegan Hart won the Giro d'Italia on Sunday, lifting his first Grand Tour trophy in front of Milan's Duomo Cathedral after finishing just 39 seconds ahead of Australian rival Jai Hindley.
Tropical Storm Zeta has stalled in the western Caribbean but forecasters say it poses the risk of a rain-heavy hurricane for the US Gulf Coast and Mexico.
Jermain Defoe scored his 300th goal in club football as Rangers moved six points clear at the top of the Scottish Premiership with a 2-0 win at home to Livingston on Sunday.
Former Brazil playmaker Ronaldinho said on Sunday he had contracted coronavirus but had no symptoms.
Tao Geoghegan Hart, who once played truant to see Sky's launch, on Sunday became the renamed team's latest major tour winner when he seized his opportunity in the closing time trial at the Giro d'Italia.
Rangers 2 Livingston 0 Jermain Defoe was delighted to hit a career milestone in style after netting his 300th club goal in Rangers’ victory at Ibrox. The 38-year-old swivelled before running in behind the Livingston defence and meeting James Tavernier’s lofted pass first time with his left foot as the ball dropped. The former England striker had forgotten he was on 299 club goals before the game, but he admitted it was special to be reminded of his feat as he watched the impressive goal back. Defoe said: “Before the game I actually forgot, which to be honest was a good thing because if I had been thinking about it during the game maybe that goal wouldn’t have come, maybe I would have snatched at the chance. “When it went in, I was delighted because, to score a goal like that, and even at the time I didn’t realise it was the 300th goal, but when they reminded me after I was delighted because I enjoyed it, it was a good goal.” Defoe, who netted his first goal more than 20 years ago for West Ham United against Walsall, revealed that the move was preplanned. “I spoke to Tav,” he said. “When he gets the ball, if I can disguise my run like I am coming short and then spin in behind, I know he has that range of passing. “As it came over my shoulder I just felt like I had to hit it first time. I obviously stayed relaxed with the finish. When I watched it back, it was a good one.” The win sent Rangers six points clear at the top of the Scottish Premiership after Celtic, who have a game in hand, had been held by Aberdeen. Rangers looked determined to build on the previous weekend’s victory at Celtic Park and goals from Joe Aribo and Defoe put them two ahead inside 16 minutes, although they lost much of their verve after half-time. However, Defoe insisted they were not paying much attention to the league table. “To be honest, personally I have not really been looking at it,” he said. “It’s important we just focus on ourselves, take each game as it comes, keep working hard, keep believing that we can improve. Even games we have won, still believe we can improve. “Training is always good, every week everyone is trying to impress the manager. Everyone wants to get in the team, which is always important. “Just focus on ourselves, we can’t take our foot off the gas, just keep going.” Livingston manager Gary Holt was encouraged by his side’s second-half showing as substitutes Josh Mullin and Alan Forrest both forced saves from Allan McGregor. “I thought we had a lot of positives, especially second half,” Holt said. “We changed the system and Josh gave us more of an out ball, another threat going forward. “We were more on the front foot second half, more aggressive against our opposite numbers, were in their faces a bit better and made it more difficult. “Rangers are a good side, they get into areas, they pull you about, but the two goals we conceded were very soft from a defensive unit.”
Hoffenheim midfielder Dennis Geiger scored his first Bundesliga goal in three years to secure his team a 1-1 draw away to Werder Bremen on Sunday.
Federation will call for criminal charges against Southlake managementNEWMARKET, Ontario, Oct. 25, 2020 (GLOBE NEWSWIRE) -- Patty Coates, president of the Ontario Federation of Labour (OFL), will join members of the Ontario Nurses’ Association (ONA) and the Service Employees International Union (SEIU) Healthcare local in front of Southlake Regional Health Centre on Monday afternoon as the outcry for preventative and punitive action grows following the violent injury of two nurses at this workplace in less than a week. What: Health-Care Workers’ Rally Against Violence When: Monday, October 26, 3:30 p.m. - 4:30 p.m. Where: Southlake Regional Health Centre, 596 Davis Dr., Newmarket, ON Who: Frontline health-care workers and OFL president Patty Coates Quotes:“This employer keeps failing to fulfill its responsibility under the law to make the workplace safe for its workers. There is no justification for this, period. The managers, CEO, and board of directors have known about the problems, allowing violence to occur for more than half a decade, yet they still aren’t taking every reasonable precaution to protect their employees. They don’t deserve any more leniency.” —Patty Coates, OFL President“York Regional Police must conduct a full investigation of the board of directors, CEO, and mangers of Southlake under Section 217.1 of the Criminal Code of Canada. It’s the law.” —Patty Coates, OFL President“Premier Ford doesn’t miss an opportunity to call nurses ‘heroes.’ So I’m calling on Ontario Solicitor General Sylvia Jones to ensure that the local police service has the adequate training and resources to do this criminal investigation of Southlake management or to appoint the Ontario Provincial Police to investigate and make sure these heroes finally get justice.” —Patty Coates, OFL PresidentQuick Facts:The management of this hospital has failed to adequately protect frontline health-care workers from violence for more than half a decade. In 2013, a registered nurse was beaten beyond recognition. Nurses at Southlake are suffering life-altering injuries and it is disproportionately women that bear the negative physical, psychological, and economic consequences.Just over a week ago, on October 16, 2020, Southlake pleaded guilty to two charges under the provincial Occupational Health and Safety Act (OHSA) for failing to prevent a violent attack on a registered nurse and security guard. This was a lenient plea deal because Southlake was charged with nine counts under the OHSA in January. Nurses have decried the deal as a “slap on the wrist” insufficient to motivate this employer to stop re-offending.Frontline health-care workers are demanding immediate action by the employer and government.Since March 31, 2004, Section 217.1 of the Criminal Code of Canada has made it a legal duty that all persons directing work, or having the authority to direct work, must take reasonable steps to prevent bodily harm arising from work – including violence:“217.1 Everyone who undertakes, or has the authority, to direct how another person does work or performs a task is under a legal duty to take reasonable steps to prevent bodily harm to that person, or any other person, arising from that work or task.” —source: Department of Justice, CanadaThe amendment also added Sections 22.1 and 22.2 to the Criminal Code imposing criminal liability on organizations and its representatives for negligence (22.1) and other offences (22.2). —source: Canadian Centre for Occupational Health and Safety (CCOHS)There is currently no Crown Attorney for York Region; according to the provincial government’s Employee and Organization Directory (INFO-GO), this position is vacant. The Crown Attorney would ultimately make the decision on whether to bring charges under the Criminal Code.The Ontario Federation of Labour represents 54 unions and one million workers in Ontario. For information, visit http://www.ofl.ca and follow @OFLabour on Facebook and Twitter.For more information, please contact: Rob Halpin Executive Director Ontario Federation of Labour email@example.com l 416-707-9014Cope343
Who said what over the sporting weekend:
Once again, the controversial VAR review system has caused an uproar in Spain after a disallowed goal in the 0-0 draw in La Liga between Cadiz and Villarreal.
Rory Butcher has kept his fifth place in the final British Touring Car Championship race at Snetterton following his last-corner clash with fellow title contender Tom Ingram but has been given a verbal reprimand and a ‘strike’.
Almost eight months after the White House first announced it would move from containment to mitigation efforts to stop the spread of the COVID-19 epidemic, the Administration is now pinning its hopes on vaccines to inoculate the population and therapies to treat the disease. Months after announcing it would be working with technology giants Apple and Google on a contact tracing app (and nearly two months after Google and Apple rolled out their exposure notification features) and initiating wide spread testing efforts nationwide with the largest national pharmacies (which never received the coordinated support it needed), the Administration appears to be giving up on a national effort to stop the spread of the COVID-19 epidemic. In an interview with CNN's Jake Tapper White House Chief of Staff Mark Meadows said that the US is "not going to control the pandemic... We are gonna control the fact that we get vaccines, therapeutics and other mitigation."
Facebook is banning Oculus users who have multiple active VR headsets tied to the same account.
Jon Bostic will be hearing from the league office.
Ecuador's Richard Carapaz has taken the lead of the Vuelta a Espana from Primoz Roglic as Ion Izagirre celebrated victory in the sixth stage.
Siemens and Carlyle are finalizing terms of the deal that could be announced as early as this week, the report said. Last week Siemens had asked Triton, Carlyle, CVC and Brookfield to submit final offers next week for the business, which has earnings before interest, tax, depreciation and amortization of just above 200 million euros and could be valued at 8-9 times that, according to sources.
The head of the World Health Organization (WHO) on Sunday called for global solidarity in the rollout of any future coronavirus vaccine, as the number of cases soared across the world.
Hoffenheim midfielder Dennis Geiger scored his first Bundesliga goal in three years to secure a 1-1 draw at Werder Bremen on Sunday.