Canadian Oil Producer Whitecap Resources Inc has agreed to buy TORC Oil and Gas Ltd in an all-stock deal valued at $430.81 million.

TORC’s shareholders will acquire 0.57 of Whitecap’s shares against each TORC share, which means a 4.3% discount to the last closing price of TROC shares. Whitecap will get TORC debt worth C$335 million. It also would have a project worth about C$4 billion after the deal.

It should be mentioned that Whitecap will acquire NAL Resources Ltd for C$155 million, owned by Manulife Financial Corp.

Canada, the fourth largest global oil producer, has a wave of merging and cost-cuts in the oil sector due to a fall in fuel demand caused by coronavirus-related lockdowns, which have negatively affected energy firms.