Falling crude prices could prompt oilsands deals
Posted Aug 16, 2011 7:09 am.
This article is more than 5 years old.
Falling crude prices may force smaller Canadian producers to partner or merge with their competitors in order to fund expansion, according to analysts.
The head of investment banking for Raymond James Ltd., Jason Holtby, tells The Globe and Mail the companies that may feel pressure to combine are those with market values below $7-billion.
Holtby says if they pool their resources they’ll have bigger scale and ability to finish projects.
The chief financial officer of Canadian Oil Sands Limited adds, a lack of financing options and liquidity may also pressure small companies to converge if they’re looking to expand.
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