The merger between Cenovus Energy and Husky Energy is officially closed.

The two oil companies announced the agreement back in October as they both try to become more competitive in the global market.

The deal is expected to create savings of around $1.2 billion, largely achieved within the first year.

The merger also creates Canada’s third-largest crude oil and natural gas producer, based on total company production, with about 750,000 barrels of oil equivalent per day.

“This is an exciting day for Cenovus as we become a leaner, stronger, more fully integrated oil and natural gas company that is exceptionally well-positioned to weather the current environment and be an energy leader in the years ahead,” said Alex Pourbaix, Cenovus President & Chief Executive Officer.

With the merger complete, Cenovus will begin cutting between 20 and 25 per cent of its workforce.

At the low end, this represents a loss of around 1,720 jobs, while at the high end it represents approximately 2,150 positions.

Most of the job cuts are expected to take place in Calgary, however, they will also look at other markets that could potentially include Wood Buffalo.