Calgary, Alberta – Suncor Energy and Petro-Canada have announced an agreement to merge the two companies. Upon completion of the transaction, the parties have agreed that the combined entity will operate corporately and trade under the Suncor name, but retain the brand presence of Petro-Canada for refined products.
“This merger creates a made-in-Canada energy leader with the assets, cost structure and financial strength to compete globally,” said Rick George, president and CEO of Suncor, who will assume the same role in the merged company. “The combined portfolio boasts the largest oil sands resource position, a strong Canadian downstream brand, solid conventional exploration and production assets, and low-cost production from Canada’s east coast and internationally.”
The merging companies estimate they will achieve annual operating expenditure savings of $300 million from efficiencies in overlapping operations, streamlined business practices and improved logistics. The companies also expect to achieve annual capital efficiencies of approximately $1 billion through the elimination of redundant spending, and targeting capital budgets to high-return, near-term projects. The merger is expected to be completed in the third quarter of 2009.