Suncor buys Petro Canada

[Flipper]

This merger and aquisition between Suncor and Petro Canada yielded a 28% profit for Petro shareholders. On friday i had a gut feeling to go all in on PCA.TO. This morning waking up to the news i had the biggest grin on my face. The stock shot up and i profited over $3500.00. Not a bad way to start the day.

Oh and i just wanted to introduce myself to the forums.

Good Trading Everyone!

[madcowdisease]

This merger and aquisition between Suncor and Petro Canada yielded a 28% profit for Petro shareholders. On friday i had a gut feeling to go all in on PCA.TO. This morning waking up to the news i had the biggest grin on my face. The stock shot up and i profited over $3500.00. Not a bad way to start the day.

Oh and i just wanted to introduce myself to the forums.

Good Trading Everyone!

The combined company is also going to receive government protection against takeover. SU and PCZ together is a beast. I like the deal and would be a buyer of SU on a significant pullback.

Also, this should help jumpstart the markets as traders look to speculate on the next takeover target. M&A always gets Wall St. juices flowing.

[Roger]

I am often very pessimistic about M&A's regarding the bidder. However, in this case there are some strategic issues for Suncor. Suncor is heavily dependent on the oil sands. The costs of exploration here are very high. The current low oil price therefore puts pressure on Suncor's revenues. The acquisition of Petro-Canada is for Suncor a kind of diversification, and gives them less relative exposure to the oil sands.

Whether the new company is a buy is too early to say. Separately the firms seemed quite okay (after a quick look). Right now they suffer of course because of low oil price, but therefore they were already very cheap.

I think it definitely worth to have a look into the new company after all details are clear.