The proposed merger of Suncor Energy (SU-T, SU-N) and Petro-Canada (PCA-T, PCZ-N) will create the largest Canadian company by market capitalization. It will also have the biggest resource footprint in the oilsands, the companies say. The combined company-which will trade under the Suncor name and boast a market cap of 45 billion dollars - will also hold a position in every major oil development proj-ect on the east coast of Canada and low-cost international crude oil and natural gas production from the North Sea, North Africa and Latin America. "The merged company will have a stronger balance sheet, be able to achieve operating and capital cost synergies and have more operational capability - all of which will improve the economics of major projects," Kelli Stevens, Petro-Canada's communications adviser on the oilsands, wrote in an email response to questions. "Given this, we may be able to push ahead on projects that independently, each company had slowed down due to the economic downturn."
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