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CVE-CA

MEG-CA

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Canadian oil and gas producer Cenovus Energy said on Friday it will buy MEG Energy in a cash-and-stock deal valued at C$7.9 billion ($5.68 billion), including debt, to create one of the largest oil sands companies in Canada.

The two companies, which will combine MEG's Christina Lake oil sands operations in Alberta with Cenovus' neighboring assets, will have a combined oil sands production of over 720,000 barrels per day.

MEG Energy in June rejected a hostile takeover offer from Strathcona Resources, calling the bid inadequate and not in the best interest of its shareholders, and launched a strategic review to explore better alternatives.

James McFarland, chairman of MEG Energy, said o

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