http://www.cbc.ca/canada/newfoundland-labrador/story/2009/06/04/suncor-petrocanada-merger.html
Merged Suncor, Petro-Canada ready to compete with 'global supermajors'

Summary
On June 4th, 2009, the share holders of Petro-Canada and Suncor Energy Inc both voted to merge the two companies under the Suncor name. While the Petro-Canada investors approved the plan with a 96% favorable vote, the Suncor shareholders approved with a 98% favorable vote. Suncor stock increased by 4.9% and Petro-Canada increased by 4.8%. As a result of the merger, Suncor will become Canada’s largest energy company and North America’s 5th largest. It will also be the second-largest firm trading on the Toronto Stock Exchange behind Royal Bank. Petro-Canada equity holders will receive 1.23 shares for each Petro-Canada share while Suncor shareholders will receive one share for each Suncor share in the new company. A small investor in Petro-Canada, Letko Brosseau & Associates, is not in favor of the plan, claiming the transaction will undervalue Petro-Canada. Although the deal appears to have many benefits, it still has to be approved by regulators.

Connection
Suncor and Petro-Canada are two corporations which have decided to merge into one corporation. There are many benefits to this decision. For example, the new company will have the financial strength to compete globally. By combining the two corporations, the company will have a resource base of approximately 7.5 billion barrels of oil of proved and probable reserves as well as a contingent resource of about 19 billion boe. Secondly, there will be a much stronger cash flow from current crude oil and natural gas production. However, the shareholders of the two companies will not share the company equally. While the suncor shareholders will own approximately 60% of the new company, Petro-Canada shareholders will own only approximately 40% of the new company.

Reflection
Personally, I feel that it is a good decision to merge the two companies because of the current economic conditions. By joining the companies, the new company will also have a more flexible cash flow. Also, they would not have to compete against each other. Most importantly, by joining the companies together, the company will become more efficient, and will therefore less likely be taken over by a foreign company. There are many Canadian companies which have been taken over by foreign countries already. Hopefully, Petro-Canada and Suncor. Inc will not be one of them in the future.