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Cenovus Energy Inc. fell more than 10 per cent, the most since its 2009 debut, after saying it will buy Canadian oil assets from ConocoPhillips for $17.7 billion in a deal partly financed with shares.

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Analysts weigh in on deal that gives a Canadian company full control of its oilsands assets, but takes on a lot of debt doing so.





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The agreement, announced after the close of trading Wednesday, will double the Calgary-based producer’s reserves and production in the latest sale of energy assets in Canada by international companies stung by falling oil prices. While Cenovus shares fell, Houston-based Conoco was having its best day in four months, rising 6 per cent to US$48.69 in New York.

Conoco is set to get 208 million shares in the deal, which it said Wednesday it will liquidate within six months. Additionally, Cenovus said it is selling 187.5 million shares at $16 each, or 8.3 per cent below the Wednesday close, to raise $3 billion. Cenovus acquires Conoco’s half interest in a joint venture with Cenovus in Canada’s oil sands and most of Conoco’s Deep Basin conventional assets in Alberta and British Columbia.