Business · Companies · 40 mins ago
Strathcona agrees to buy Greenfire in deal worth up to $2.9 billion
Strathcona Resources has agreed to buy Greenfire Resources, combining two oil sands producers focused on Alberta.
The deal is valued at about $2.7 billion to $2.9 billion, including debt.
Greenfire shareholders can choose $11 in cash or 0.25 Strathcona shares for each share they own.
The companies say the deal will expand Strathcona’s presence in Alberta’s oil sands region.
Waterous Energy Fund, which owns about 72 per cent of Greenfire and 57 per cent of Strathcona, supports the deal and will take Strathcona shares for its Greenfire holdings.
The deal is expected to close in early 2027, subject to shareholder and regulatory approvals.
Strathcona Resources has agreed to acquire Greenfire Resources in a deal valued at up to $2.9-billion, including debt.
Greenfire shareholders can choose 0.25 Strathcona shares or $11 in cash for each Greenfire share.
The deal brings together two Alberta-focused oil sands producers.
The transaction is expected to close in early 2027, subject to shareholder and regulatory approvals.
- Who
- Strathcona Resources and Greenfire Resources.
- What
- Strathcona agreed to acquire Greenfire in a deal valued at about $2.7-billion to $2.9-billion, including debt.
- When
- The agreement was announced on Sunday; the deal is expected to close in early 2027.
- Where
- Alberta’s oil sands region.
- Why
- Strathcona is expanding its presence in Alberta’s oil sands region.
This story does not have two clearly opposing sides.
Strathcona said it would acquire Greenfire Resources.
The deal is expected to close, subject to shareholder and regulatory approvals.
- Deal value
- About $2.7-billion to $2.9-billion, including debt
- Cash option
- $11 for each Greenfire share
- Share option
- 0.25 Strathcona shares for each Greenfire share
- Greenfire net debt
- About $550-million as of Sept. 30
- Expected closing
- Early 2027