Suncor Energy (SU) is buying TotalEnergies' (TTE) stake in the Fort Hills oilsands project for $6.1 billion.
The deal gives Suncor complete control of Fort Hills, an oilsands mine located 90 km north of Fort McMurray, Alberta.
Last year, Suncor bought Teck Resources’ (TECK) 21.3% stake in the Fort Hills project for $1 billion.
TotalEnergies, which is based in Paris, France, said it plans to exit the Canadian oilsands.
In recent years, several foreign-owned companies have divested their holdings in the oilsands, while Canadian companies such as Suncor have been consolidating in the region.
According to consulting firm Wood Mackenzie, production in the oilsands will be 91% owned by Canadian firms once the Suncor-TotalEnergies deal is finalized.
Suncor has been revamping its portfolio to focus on what it calls its “core” oil business.
The Calgary-based company has been under pressure from activist investor Elliott Investment Management to improve its share price performance.
Suncor said that once the deal closes it intends to increase its quarterly dividend payment by about 10%.
The stock of Suncor has declined 13% in the last 12 months to $41.29 per share.
Related Stories
