⁍ Analysts questioned the Canadian oil producer’s C$3.8 billion all-stock purchase of rival Husky Energy.

---

⁍ Husky Energy shares were up 6.3% at C$3.37.

---

⁍ The deal is the largest merger in the country’s energy sector in nearly four years.

---

– Canadian oil producer Cenovus Energy has agreed to buy rival Husky Energy in an all-stock deal valued at $2.8 billion, or about C$3.83 per Husky share, in what would be the largest energy merger in Canada in four years, reports Reuters. The all-stock deal values Husky at C$3.83 per share, nearly 21% above its closing price on Friday. But Cenovus shares were down more than 10% in early trading Monday, per Reuters, as analysts questioned the deal’s logic in a low-demand environment. “The merger also greatly dilutes the quality of the upstream asset base, which has always been a key point of differentiation,” said Credit Suisse analyst Manav Gupta, adding that Cenovus was paying an “excessive” premium.