Canadian oil producer Whitecap Resources Inc. said on Dec. 8 it has agreed to buy rival TORC Oil & Gas Ltd. in an all-stock deal valued at about CA$552 million (US$430.81 million).

The collapse in fuel demand due to coronavirus-related lockdowns has hammered energy companies in Canada, the fourth-largest global oil producer, triggering a wave of consolidation and cost-cuts in the sector.

Cenovus Energy Inc. said in October it had agreed to buy Husky Energy Inc. for CA$3.8 billion (US$2.97 billion) in a deal that would create Canada's No. 3 oil and gas producer.

Under the deal announced on Dec. 8, shareholders of TORC will receive 0.57 Whitecap shares in exchange for each TORC share, representing a discount of about 4.3% to the last closing price of TORC shares.

Whitecap will also take on CA$335 million of TORC debt.

The oil producer said it would have an enterprise value of about CA$4 billion after the deal, which is expected to close on or before Feb. 25.

In August, Whitecap said it would buy NAL Resources Ltd, owned by Manulife Financial Corp, for CA$155 million. (US$1 = 1.2813 Canadian dollars)