Petro-Canada Acquires Petrofina

PETROFINA SA, the Belgian multinational oil firm, announced today it has agreed to sell its Canadian subsidiary to PETRO-CANADA for $1.46 billion (Canadian).

PetroCanada through its subsidiary will make a public takeover bid for any and all of the shares of Petrofina Canada Inc. for $120 per share in Canadian currency, or the equivalent in U.S. currency at the time. Petrofina S.A. which owns approximately 70% of Petrofina Canada has agreed to deposit enough shares under the bid to ensure that at least 51% of Petrofina Canada will be acquired by Petro-Canada, Shareholders of Petrofina Canada will have the right to deposit their shares in Petrofina Canada under the takeover bid in 1981, 1982 and 1983, the company reports.

The bid will not be made unless the sale of assets by Petrofina Canada to a subsidiary of Petro-Canada is completed. The parties anticipate that some weeks will be required before the takeover bid can be mailed to all shareholders, Petro-Canada says.

Petrofina Canada Inc.'s major assets consist of: oil production of approximately 17,000 barrels per day and gas production of approximately 80 million cubic feet per day; a refinery with a nominal capacity of 95,000 barrels per day in Montreal; a five per cent interest in the Syncrude Tarzan's project; and eight per cent interest in the proposed Alsands Tarzan's mining project; a network of distribution and retail outlets for gasoline and oil products which include over 1,000 outlets in the provinces of Ontario, Quebec, Nova Scotia, New Brunswick and Prince Edward Island, the company says.

This acquisition is made by Petro-Canada pursuant to the policy of the government of Canada announced in its national energy program. Petrofina S.A. is continuing its petrochemical activities in Canada, according to Petro-Canada.

Petrofina S.A. has indicated its desire to continue to undertake exploration and development of oil and gas in Canada and intends to remain active in pursuit of investment opportunities. Petrofina and Petro-Canada will be discussing the possibility of some joint ventures in future exploration activities, Petro-Canada says.