The merger of Suncor Energy and Petro-Canada will create North America’s fifth-largest energy firm, but bigger may not always be better, analysts caution. And while the deal will increase flexibility, cost savings and competitiveness during the recession, analysts say Suncor will also lose some of its allure as a purely oilsands-focused player.

Suncor will remain a top oilsands producer once it takes on Petro-Canada’s vast operations, but it will also add assets in Syria, Libya and the North Sea.

The merged company would have a market capitalization of $46 billion and would be the second-largest name on the Toronto Stock Exchange, behind only Royal Bank of Canada.