The Strategist

TotalEnergies to sell its Canadian subsidiary to Suncor

04/28/2023 - 03:21

According to a press release from the firm, TotalEnergies, a French oil and gas corporation, will sell its whole ownership in its Canadian subsidiary, TotalEnergies EP Canada, to Suncor for C$5.5 billion ($4.1 billion).

"TotalEnergies received several offers following announcement of the divestiture of its Canadian assets, among which was an offer from Suncor Energy Inc. to acquire its entire stake in TotalEnergies EP Canada Ltd. The offer was accepted within the past month," reads the message.

Under the contract, Suncor will pay C$5.5 billion (US$4.1 billion) to buy all of TotalEnergies EP Canada Ltd.'s shares. Additional payments, however, are conceivable and, under some circumstances, might reach a maximum of 600 million Canadian dollars (or $450 million).

The sale will be approved upon the partners of TotalEnergies EP Canada Ltd relinquishing their first right to purchase and the fulfillment of usual conditions, including obtaining all relevant state permits. If the deal goes through, TotalEnergies and Suncor hope to have it done by the end of the next quarter.