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Canada’s Secure Energy Services Inc said on Tuesday it would buy waste management services firm Tervita Corp in an all-stock deal valued at $478 million, the latest consolidation in the country’s oil sector.

The deal, which will value the combined company at around $2.3 billion, comes as oil and gas companies seek to benefit from a recent run-up in crude oil prices while keeping a tight leash on costs.

Secure, which operates a network of crude processing and storage plants, oil and water pipeline and crude-by-rail terminals, said it will pay 1.2757 of its shares for each Tervita share held.

At the implied price of $4.13 per Tervita share, the deal values the industrial waste management firm at a 10.7-per-cent discount to its Monday closing price of $4.63.

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