Husky Energy offers to buy MEG Energy for $6.4 billion

Husky Energy made an unsolicited $6.4 billion takeover offer for rival Canadian oil and gas producer MEG Energy, representing a 37% premium over Friday's close.

Why it matters: This is China's battle for Canada's oil sands. Husky is controlled by affiliates of Hong Kong billionaire Li Ka-shing, while Cnooc holds a 12% stake in MEG. Per Bloomberg's Kevin Orland, "The takeover would create an oil producer churning out more than 410,000 barrels of oil equivalent a day and with an almost equal amount of refining capacity."