CALGARY - Shares in Secure Energy Services Inc. were trading higher after it announced an all-stock deal to buy oilfield waste disposal rival Tervita Corp., the latest in a string of consolidation transactions in the oilpatch.

Secure is offering 1.2757 common shares for each Tervita share in the friendly deal between the Calgary-based companies which values Tervita at $478 million at Secure's Monday closing price of $3.24.

Secure's shares rose by as much as 15.7 per cent on Tuesday morning to $3.75, however, while Tervita's shares fell by as much as 7.3 per cent to $4.29.

In a joint news release, the companies say the merger will result in a stronger midstream and environmental solutions business that will have total enterprise value of about $2.3 billion.

They say it is expected to provide improved free cash flow from greater scale and annual integration cost savings of about $75 million within 12 to 18 months.

Upon completion, existing Secure shareholders will own about 52 per cent of the company.