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CALGARY, ALBERTA -- Shareholders of both Petro-Canada and Suncor approved the proposed merger of the two oil companies.
At a special meeting of shareholders here, more than 96 percent of votes cast by Petro-Canada's shareholders favored the proposed merger of Petro-Canada and Suncor. More than 98 percent of the votes cast by Suncor, at a separate meeting here, favored the merger.
A new stock option plan was approved by more than 52 percent of the votes cast by Petro-Canada shareholders, which will bring together the plans of Suncor and Petro-Canada, the company noted.
"Shareholders recognized 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 chief executive officer.
At the time the merger agreement was announced in late March, Suncor President and CEO Rick George noted the new company would create "a made-in-Canada energy leader with the assets, cost structure and financial strength to compete globally. 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."
George, who will retain the titles of president and CEO in the newly formed company, said the two entities coming together was more than a strategic fit. "I also believe there's a lot of common ground in our corporate vision" he said. "Both Petro-Canada and Suncor have a history of innovation and pushing the frontiers of oil and gas development in Canada. And just as importantly, both companies have taken a leadership position in striving to develop not just resources, but also communities, the Canadian economy and our quality of life. We've both put a strong focus on people and our shared environment and together, I expect that focus to be even stronger as we move forward."
The merging companies estimate achieving annual operating expenditure reductions of $300 million. These savings are expected to come from efficiencies in overlapping operations, streamlining business practices and improved logistics. The companies also expect to achieve annual capital efficiencies of approximately $1 billion through elimination of redundant spending and targeting capital budgets to high-return, near-term projects, according to a Suncor statement.
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