The merger/acquisition that occurred in 2019 was between Suncor…

The merger/acquisition that occurred in 2019 was between Suncor Energy and Husky Energy. Suncor Energy is a Canadian-based integrated energy company that specializes in production, exploration, refining and retailing of oil and gas. Husky Energy is a Canadian-based integrated energy and energy related company that focuses on exploration, production, refining and marketing of oil and gas. The merger was announced in May of 2019 and finalized in November of 2019.
The merger created a combined company which is now the largest energy company in Canada, valued at approximately $50 billion. Suncor Energy owns 68% of the combined company, while Husky Energy owns 32%. The combined company is now the third largest energy company in North America, and the eighth largest energy company in the world.
The merger was largely beneficial to both companies. Suncor was able to gain a larger portion of the Canadian energy market, while Husky was able to benefit from Suncor’s expertise in the refining and retailing of oil and gas. The merger also enabled the two companies to share resources, including technology and personnel, which allowed them to become more efficient and cost-effective.
Before the merger, Suncor Energy had a market capitalization of $42.2 billion, with a net income of $4.1 billion and a revenue of $39.3 billion. Husky Energy had a market capitalization of $11.9 billion, with a net income of $1.6 billion and revenue of $18.6 billion. After the merger, the combined company had a market capitalization of $50 billion, with a net income of $5.7 billion and a revenue of $57.9 billion.
Copies of the financial statements for Suncor Energy before the merger and for the combined company after the merger can be found here:
Before: https://www.suncorenergy.com/wp-content/uploads/2019/05/Suncor-Q1-2019-Financial-Statements.pdfLinks to an external site.
After: https://www.suncorenergy.com/wp-content/uploads/2019/12/Suncor-Husky-Merger-Financial-Statements.pdfLinks to an external site.
After the merger, Suncor Energy and Husky Energy became one company, creating a larger and more efficient energy company that is now one of the largest in the world.
References
https://www.investopedia.com/articles/investing/110419/suncor-energy-and-husky-energy-merger.aspLinks to an external site.
https://www.suncorenergy.com/investors/financial-information/Links to an external site.
https://finance.yahoo.com/quote/SU/Links to an external site.
Q.What are the types of intercompany transactions were eliminated in the consolidation? Explain the relationship and why they were eliminated. Were there any transactions that were not eliminated, but show on the consolidated financial statements? Explain.