A pedestrian is reflected in a Suncor Energy sign in Calgary, Feb. 1, 2010. Suncor Energy has announced that nearly 73 per cent of Canadian Oil Sands shares and accompanying rights have been tendered to Suncor's offer. Suncor officials said that as a result, the company will be able to ensure that a subsequent acquisition transaction will be completed and Suncor will acquire the remainder of the outstanding COS shares. THE CANADIAN PRESS/Jeff McIntoshThe Canadian Press
Canadian Oil Sands Ltd. will be integrated immediately into Suncor Energy Inc. after minority shareholders voted in favor of the takeover.
The largest owner of the Syncrude oil sands mine will be delisted from the Toronto stock exchange on Wednesday following the vote on Monday. Suncor now has to find ways to reduce operating costs and share some operations with its other oil-sands sites, said Steve Reynish, Suncor's vice president of strategy. Imperial Oil Ltd. operates the Syncrude venture.
"The operator has already done a good job of taking some costs out of the system and we think there's more room to go with that," Reynish said in a briefing following the meeting that lasted 15 minutes. "We're very pleased with Imperial as the operator."
Suncor succeeded in winning over resistant Canadian Oil Sands management and shareholders after sweetening its offer earlier this year, following a war of words between the companies over the fate of Syncrude. Suncor made two offers before a hostile bid in October and finally secured Canadian Oil Sands management's green light for the takeover in January.
Suncor paid Canadian Oil Sands shareholders 0.28 Suncor shares for each of the target. Canada's largest oil producer by market value owned 84 per cent of Canadian Oil Sands shares at the start of the meeting.
"There are many opportunities coming on the friendly side" for more takeovers, Reynish said, declining to provide any details or possible targets.