Malaysia's Petronas has agreed to buy Canada's Progress Energy Resources in a deal worth 5.5bn Canadian dollars ($5.3bn; £3.4bn).
Petronas has offered C$20.45 per Progress share, a 77% premium on their closing price on Wednesday.
The deal will give Petronas control of vast shale gas reserves in Canada.
Shale gas prices are significantly lower in North America than in Asia and many firms have been keen to tap into the North American reserves.
"Our asset base requires extensive capital to develop its large potential," said Michael Culbert, president and chief executive of Progress Energy.
"Petronas offers the size and scale that will enable our company to continue to grow and not be limited by the same cashflow challenges faced by many producers in the North American natural gas market today."
Source & Image : BBC
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