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Canada's Suncor Energy and Petro-Canada to Merge

03/24/2009
Suncor Energy and Petro-Canada, two of Canada's largest energy companies, have agreed to a merger that will create the fifth-largest oil company in North America, according to the Financial Post of Canada. Suncor will pay CAN$19.2 billion to purchase the stock of Petro-Canada and the new company will operate under the Suncor name. "This merger creates a made-in-Canada energy leader with the assets, cost structure, and financial strength to compete globally," says Rick George, Suncor's president and CEO, in a company statement; George will retain the title in the newly formed company. "The increased scale provides more stability in volatile markets, plus the financial and organizational capability to successfully take on large-scale projects in the future," says Ron Brenneman, Petro-Canada's CEO, who will assume the role of executive vice chair in the merged company. The Financial Post says that if the deal is approved -- by shareholders of both companies and the Canadian government -- it will create Canada's second-largest company with CAN$38.9 billion in revenue.

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