The Canadian energy company Suncor Energy announced Monday that it has offered Canadian Oil Sands Limited Company C$4.3 billion ($3.3 billion) to acquire the entire firm's remaining shares.
Canadian Oil Sands Limited holds a 36.74 percent interest in Canada's syncrude project, which is the largest producer of light, sweet synthetic oil from Canada’s rich oil sands.
Canada has the third biggest crude oil reserves in the world after Saudi Arabia and Venezuela. However, compared to other oil regions in the world, production costs are higher in Canada.
Despite falling oil prices, Suncor announced on July 29 that its cash flow from operations did not face a significant decline in the second quarter of this year, resulting in C$2.15 billion, compared to C$2.4 billion during the same quarter of the previous year.
This amount was 'more than enough to fund our capital requirements and our dividend,' Steve Williams, president and chief executive officer of Suncor said in a statement.
According to the company, Canadian Oil Sands Limited's cash flow from operations was C$70 million in the second quarter of 2015, compared to C$240 million in the same quarter of 2014.
Due to the recent slump in oil prices, it is hard for the companies to see a return of their investments, while merger and acquisitions are an option to survive in the current market conditions.
Earlier this year, the global energy giant Royal Dutch Shell announced it will buy the gas company BG group for $70 billion, which is one of the largest acquisitions in the oil industry ever and the biggest this year.
By Ovunc Kutlu
Anadolu Agency
ovunc.kutlu@aa.com.tr