Cenovus Energy Inc. has signed a cash-and-stock deal to buy MEG Energy Corp. that values the company at $7.9 billion, including debt. The deal comes after Strathcona Resources Ltd. made an unsolicited offer for MEG in May that the company urged shareholders to reject.

Cenovus Energy (NYSE:CVE) agreed to acquire MEG Energy (OTCPK:MEGEF) in a cash and stock deal valued at C$7.9B (~US$5.7B) including debt, creating one of Canada's largest oil sands companies, the companies announced Friday.

The Cenovus takeover unites two Calgary-based firms with significant operations in the oil-sands region of northeastern Alberta.