TotalEnergies to sell Canadian operations to Suncor Energy
Torys is acting as counsel to TotalEnergies with a team led by Derek Flaman and that includes Amy Maginley, Chris Christopher, Alanah Wiberg, Carleigh Kennedy and Collin Intrater (corporate/M&A), Omar Wakil and Ian Li (competition), Darryl Hiscocks (employment), Craig Maurice, Andrew Silverman and Benjamin Mann (tax).
On April 27, 2023, TotalEnergies SE (“TotalEnergies”) announced that it signed an agreement with Suncor Energy Inc. (“Suncor”) for the sale of its Canadian operations.
Pursuant to the agreement, Suncor will acquire the entirety of the shares of TotalEnergies EP Canada Ltd. (“TotalEnergies Canada”), which holds a 31.23% working interest in the Fort Hills oil sands mining project (“Fort Hills”) and a 50% working interest in the Surmont in situ asset, for a cash consideration of C$5.5 billion (about US$4.1 billion), with the potential for additional payments of up to an aggregate maximum of C$600 million (about US$450 million), conditional upon Western Canadian Select benchmark pricing and certain production targets.
TotalEnergies and Suncor are targeting closing by the end Q3 2023, subject to the waiver of TotalEnergies Canada’s partners pre-emption rights and customary closing conditions, including the required approval from public authorities. Subject to closing, the transaction will have an effective date of April 1, 2023.
Further information can be found on transaction can be found on TotalEnergies’ website and on newsfile.com.
Suncor is Canada's leading integrated energy company. Its operations include oil sands development, production and upgrading, offshore oil and gas production, petroleum refining in Canada and the United States and the company's Petro-Canada retail and wholesale distribution networks, including Canada's Electric Highway, a coast-to-coast network of fast-charging EV stations.
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity.