Cenovus Energy Inc. announced Sunday it would take over Canadian oil and gas rival Husky Energy Inc., combining two of the country’s top producers, in a share swap valued at C$3.8 billion ($2.85 billion). Total estimated value of the transaction, including debt, is C$23.6 billion ($17.7 billion).

Projected oilsands production

The run rate synergies achieved by the corporate marriage of Cenovus and Husky are expected to annually save C$1.2 billion ($900 million) in combined costs of administration and operations in Canada, the United States and overseas, the independent producers predicted.

“We will be a leaner, stronger and more integrated company, exceptionally well suited to weather the current environment and be a strong Canadian energy leader in the years ahead,” said Cenovus President Alex...