Suncor Energy has agreed to buy Canadian Oil Sands in $2.9billion deal after winning approval from a management team that had previously rejected the bid.
The deal comes after Suncor increased its offer to 0.28 of its shares for each Canadian Oil Sands stock.
Suncor chief executive Steve Williams said: “We believe this transaction delivers excellent value to COS shareholders while maintaining Suncor’s commitment to capital discipline, providing both companies’ shareholders with near and long-term value.”
Earlier this month it was revealed the offer by Suncor had been extended until the end of January.
Last month, the board of Canadian Oil Sands had sent a letter to its shareholders urging them to reject the hostile bid.
The new terms will require approval of at least 51% of Canadian Oil Sands shares to be tendered by shareholders.
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