Canada's Veren rises on $10.4 billion merger deal with Whitecap Resources

Canadian oil producer Veren's VRN.TO shares rise 15% to C$8.12

Co will merge with Whitecap Resources WCP.TO in an all-stock deal valued at C$15 billion ($10.43 billion) including debt, to form an energy giant

*Shares of oil producer Whitecap Resources WCP.TO down 11.7% to C$8.25

Veren shareholders will receive 1.05 shares of Whitecap for each share held, or C$9.82 based on the last close, which implies a deal value of about C$6 billion, as per Reuters calculation

It represents a 39% premium to Veren's close on Friday

VRN shareholders will own 52% of the combined company, while WCP shareholders will own the rest 48%

The combined company expects to have production of 370,000 barrels of oil equivalent per day, of which 63% will be liquids

The transaction is expected to close before May 30, 2025

Including session's moves, VRN shares up 7.31% YTD

($1 = 1.4384 Canadian dollars)