Suncor Energy Inc. said Monday it plans to buy Petro-Canada in a deal that would combine two large Canadian oil companies with U.S. operations.

Petro-Canada currently operates more than 1,300 conveneince stores and travel centers under the Petro-Canada and Neighbours retail brands.

Suncor operates a refinery in Commerce City, Colo., that produces gasoline, diesel fuel and asphalt through its unit Suncor Energy USA Inc., based in Greenwood Village, Colo. Petro-Canada also has Colorado operations. Its unit Petro-Canada Resources USA Inc. is based in Denver. Both companies are headquartered in Calgary, Alberta.

The deal was initially valued at $14.86 billion (U.S.) based on stock value at the time of the announcement, Reuters reported. The purchase is subject to approval by the shareholders for both companies and Canadian regulators.

The companies said the proposed merger would save them a combined $244 million in operating costs and $812 million in capital efficiencies per year.

“This merger creates a made-in-Canada energy leader with the assets, cost structure and financial strength to compete globally,” Rick George, president and CEO of Suncor said in a statement. He would continue in those roles in the combined company.

George also said that he doesn’t foresee any asset sales arising from Suncor’s merger with Petro-Canada. The combined company, which will keep the Suncor name, will also hold off from pursuing further acquisitions over the next few years, as Suncor and Petro-Canada integrate their operations, he added.

“We don’t see in this new company any sales of any assets, particularly not the refining assets,” George said at a news conference Monday. The new company will have 433,000 barrels of refining capacity spread among three facilities across Canada and the U.S. The new Suncor will form Canada’s largest energy company that can compete with the supermajors Exxon Mobil Corp. and Royal Dutch Shell PLC, which have a similar expansive presence in the country, George said.