The deal, first announced in March, is subject to all regulatory approvals and review by the Canadian Competition Bureau. The merged company will keep the Suncor name and will retain the Petro-Canada retail brand. ([image-nocss] Click here for previous CSP Daily News coverage.)
"Shareholders recognized that the merger between Petro-Canada and Suncor would create Canada's premier integrated energy company with the assets, cost structure and financial strength to compete globally," said Ron Brenneman, Petro-Canada's president and CEO.
"This is a great vote of confidence from our shareholders," said Rick George, president and CEO of Suncor, who will assume the same role in the merged company. "Creating a made-in-Canada company that can compete on a global scale is good for shareholders and good for Canada. We anticipate that our two companies will be able to realize efficiencies and opportunities neither of us could have realized on our own. With an integrated business model we expect to have a global leadership position in the oil sands industry, a strong Canadian downstream brand, an attractive portfolio of domestic and international oil and natural gas assets, and numerous growth opportunities through the combined inventory of Suncor and Petro-Canada's potential development projects."
Click here for addition leadership changes.
At Petro-Canada, shareholders approved a new stock option plan by more than 52% of the votes cast, which will bring together the plans of Suncor and Petro-Canada and be used to attract and retain highly qualified directors, officers and employees. At Suncor, 57.67% of the votes cast were in favor of the new stock option plan.
Both companies elected 11 board members, including 10 independent directors until the earlier of either the completion of the merger or the next annual general meeting. These individuals are also proposed board members for the new merged company.
Petro-Canada also appointed Deloitte & Touche LLP as its auditors; Suncor appointed PricewaterhouseCoopers LLP.
Calgary, Alberta-based Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and the downstream sectors of the industry in Canada and internationally.
Suncor is an integrated energy company also headquartered in Calgary. Along with its upstream operations, it operates a refining and marketing business in Ontario with retail distribution under the Sunoco brand. U.S. downstream assets include pipeline and refining operations in Colorado and Wyoming and retail sales in the Denver area under the Phillips 66 brand. Suncor Energy (U.S.A.) Inc. is an authorized licensee of the Phillips 66 brand and marks in the state of Colorado. Sunoco in Canada is separate and unrelated to Sunoco in the United States, which is owned by Sunoco Inc., Philadelphia.
Click here for Petro-Canada webcast and Brenneman's presentation.
Click hereto view the Suncor webcast.
More details on the merger can be found by clicking here.
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