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March 22 (Reuters) - Canadian oilfield services provider Trican Well Service Ltd TCW.TO said it would buy smaller rival Canyon Services Group Inc FRC.TO in a deal valued at about C$637 million ($475.5 million), including debt.
Canyon shareholders will receive 1.7 shares of Trican for each share they own. That translates to an offer price of C$6.63 per Canyon share, representing a 32 percent premium to the stock's Tuesday close. will also assume about $40 million in debt.
A more than 50 percent fall in global crude prices since 2014 has triggered a wave of consolidation in the oilfield services industry, which has been battered by a sharp drop in service prices.
General Electric (NYSE:GE) Co GE.N has agreed to merge its oil and gas business with Baker Hughes Inc BHI.N to create the world's No. 2 oilfield services business, while other large players such as Schlumberger NV (NYSE:SLB) SLB.N and Technip (PA:FTI) TECF.PA have bought smaller rivals.
Trican shareholders are expected to own about 56 percent of the combined company, while Canyon shareholders will own the rest.
RBC and Scotiabank were financial advisers to Trican while Blake, Cassels & Graydon LLP provided legal counsel.
Peters & Co Ltd was Canyon's financial adviser. Burnet, Duckworth & Palmer LLP was its legal adviser.
($1 = 1.3397 Canadian dollars)