Cenovus Energy Inc. and Husky Energy Inc. have received all key regulatory approvals required for their proposed merger to create Canada’s No. 3 oil and gas producer, the companies said on Dec. 21.

RELATED: Husky Energy Shareholders Overwhelmingly Approve Nearly $5 Billion Sale to Cenovus

Last week, the deal of about CA$6 billion (US$4.66 billion) was approved by shareholders of both the companies.

A recent recovery in oil prices has helped energy shares, boosting the value of the all-stock transaction by about 60% from its initial CA$3.8 billion valuation in October, when the deal was first announced.

The deal, expected to close on Jan. 1, comes amid a pandemic-driven demand collapse and weak oil prices which has forced the industry to consolidate.

($1 = 1.2879 Canadian dollars)