Canada minister OKs Marathon acquisition |
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Mon, 15 Oct 2007 22:24
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HOUSTON (AP) - Canadian regulators have approved Marathon Oil Corp.'s $5.5 billion acquisition of Western Oil Sands Inc., the U.S. energy company said Monday.As part of the deal, the fifth-largest U.S. refiner agreed to develop Western Oil's oil sands operations and to link Western Oil's oil sands resources with Marathon's U.S. refining and marketing operations.Marathon also promised to maintain Western Oil's head office in Calgary, Alberta, as well as maintain certain employment levels there.Western Oil will hold a special meeting of its shareholders on Tuesday to vote on the acquisition.Under the terms of the deal, originally announced in July, Western Oil shareholders will get $3.6 billion in cash and $1.9 billion in Marathon stock. Marathon also will assume $650 million in Western Oil debt, valuing the total deal at roughly $6.2 billion.Marathon said the deal gives it a 20 percent interest in the Athabasca Oil Sands Project in Alberta currently held by Western Oil. Shell Canada Ltd. and Chevron Canada Ltd. hold the remaining 60 percent and 20 percent stakes, respectively.Marathon shares rose $1.02 to close at $59.36.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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