Pipestone shareholders approve merger with Strathcona Resources

Shareholders of Pipestone Energy Corp. have voted to approve a merger with Strathcona Resources Ltd.

Shareholders voted in favour Wednesday of a proposal which will see privately held Strathcona buy them out in an all-stock deal, creating a combined company with an initial market capitalization of $8.6 billion.

The deal will see Strathcona go public.

The Calgary-based companies say the merger will create what will be the fifth largest oil producer in Canada, with production of 185,000 barrels of oil equivalent per day.