Sinopec International Petroleum Exploration and Production Corporation (SIPC) Monday announced the acquisition of a Canadian energy company with strengths in natural gas, as a part of its push to expand overseas.

SIPC, a wholly-owned subsidiary of Sinopec Group focusing on overseas upstream businesses, has agreed to buy Daylight Energy Ltd, Sinopec Group said in a statement Monday.

China’s largest oil refinery will purchase the Canadian company based in Calgary, Alberta, for C$10.08 per share or approximately C$2.2 billion ($2.1 billion) in cash, according to the two companies.

The amount represents a 43.6 percent premium over the 60-day weighted average trading price and double the closing price of C$4.59 on Friday, Daylight Energy said.

“The high premium is because of the relatively low valuation levels in the global share market,” Grace Liu, a researcher at Guotai Junan Securities, told the Global Times Monday.

Toronto stock exchange-listed Daylight Energy has 69 oil and gas fields in Northwest Alberta and Northeast British Columbia. About 70 percent of the Daylight Energy’s reserves mainly consist of natural gas.

The production and reserves of crude oil and natural gas liquids of Daylight is about 1.89 percent and 0.83 percent respectively of Sinopec’s total, and the production and reserves of natural gas is about 11.98 percent and 5.0 percent respectively, Liu said.

Sinopec Group said in the statement that it will further extend its business in Canada in line with its overseas push.

“Due to a lack of upstream assets, Sinopec has been very aggressive in resources acquisition as its strategy,” Shi Yan, an analyst at UOB-Kay Hian Ltd, told the Global Times Monday.

The deal, which is expected to close by the end of the year, is subject to approval by Daylight shareholders and reviews by regulators in both countries.