The Globe and Mail reports in its Tuesday edition that last Friday, Canadian Imperial Bank of Commerce and JPMorgan pledged $5.2-billion in loans for Cenovus Energy's $7-billion acquisition of MEG Energy, topping a prior hostile bid from Strathcona Resources. The Globe's Andrew Willis writes that Strathcona initiated the bidding war in May with financing from Bank of Nova Scotia and Toronto-Dominion Bank. The current environment in the oil sector, where capital is more accessible, suggests a renewed wave of expansion and deal-making. Complex deals like the Cenovus takeover create significant fees for bankers. The debt financing from CIBC and JPMorgan includes a $2.7-billion term loan and a $2.5-billion bridge facility. After closing, Cenovus plans to replace the bridge loan with corporate bonds, providing another revenue stream for financiers. Cenovus and its lenders are confident in committing billions to the MEG takeover due to strong economies of scale in the oil sands. Both companies use steam for oil extraction in Alberta's Christina Lake, but Cenovus operates much more efficiently. Applying Cenovus technology to MEG's projects will significantly increase oil production, while cutting costs by $400-million annually.