Husky Energy offers to buy MEG Energy for $6.4 billion

Husky Energy made an unsolicited $6.4 billion takeover offer for rival Canadian oil and gas producer MEG Energy, representing a 37% premium over Friday's close.

Why it matters: This is China's battle for Canada's oil sands. Husky is controlled by affiliates of Hong Kong billionaire Li Ka-shing, while Cnooc holds a 12% stake in MEG. Per Bloomberg's Kevin Orland, "The takeover would create an oil producer churning out more than 410,000 barrels of oil equivalent a day and with an almost equal amount of refining capacity."

Expert Voices

High power demand could reduce business appeal of AVs

A test engineer in a driverless taxi of Yandex.Taxi ahead of a test-drive in the science city [naukograd] of Innopolis. Yegor Aleyev/TASS (Photo by Yegor Aleyev\TASS via Getty Images)
A test engineer in a driverless taxi in the citty of Innopolis, Russia. Photo: Yegor Aleyev/TASS via Getty Images

The development of autonomous vehicles (AV) continues at a fast pace. Ford and GM, for example, have invested heavily into this technology to launch commercial models as early as 2020, while Japan hopes to showcase AVs at the 2020 Tokyo Olympics manufactured by Toyota and Honda. As remarkable as these advances are, significant business challenges remain.

The big picture: Automation comes at a price, and that price is power. The more autonomous features a vehicle has, the more power it requires from its battery system. As AV technology develops, larger batteries will be required that will, in turn, require longer charger times.