Suncor Energy, Petro-Canada merger on track to become effective Aug. 1

By Lisa Kerner

Charlotte, N.C., July 22 - The Competition Bureau in Canada has approved the proposed merger of Petro-Canada and Suncor Energy Inc. after the companies agreed to take steps to maintain retail and wholesale competition in Ontario.

The companies will divest 104 retail locations and enter into some supply and throughput arrangements in Ontario for a period of 10 years, a joint company news release said.

"We are satisfied that the resulting terms will preserve the expected benefits of the merger and maintain a competitive refined products market in Ontario," Suncor president and chief executive officer Rick George said in a news release from the companies.

"With this major milestone behind us, our focus now is to get the final pieces in place to close the deal and launch what will be Canada's premier energy company," said George, who will become the president and CEO of the combined company.

Suncor and Petro-Canada said they plan to make their merger effective Aug. 1 now that all closing conditions have been met.

In March, Suncor and Petro-Canada announced they would combine in a plan of arrangement that gives each company's shareholders a stake in the merged entity.

As previously reported, Petro-Canada common shareholders will receive 1.28 common shares of the combined company for each common share of Petro-Canada they own. Suncor shareholders will receive one common share of the merged company for each common share of Suncor they own.

The transaction is expected to close in the third quarter of 2009.

According to the companies, the combined entity will operate corporately and trade under the Suncor name while maintaining its brand presence of Petro-Canada in refined products.

The combined company will trade on the Toronto and New York stock exchanges under the symbol "SU" once the merger is completed.

Suncor is an integrated energy company based in Calgary, Alta.

Petro-Canada is an oil and gas company also located in Calgary.

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