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.
Under the deal announced on Tuesday, 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 C$335 million of TORC debt.
The oil producer said it would have an enterprise value of about C$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 C$155 million.29dk2902l