Toronto (Bloomberg) <\m> Canadian stocks gained, paced by energy shares, as crude oil climbed and take-over in the oil industry fanned speculation that more companies will be bought.Energy shares gained 0.9 percent, the most of 10 industry groups, after closely held North American Oil Sands Corp. agreed to be bought for $2 billion by Statoil ASA, a Norwegian oil and natural gas producer. Suncor Energy, the world's second largest oil-sands producer, also gained. Energy shares account for 27 percent of the Canadian stock market.

"The question is which company could be the next target," said Pierre Lapointe, assistant market strategist at National Bank Financial in Montreal. "There has been a lot of M&A all over the world. Investors are hoping the action will come into the energy sector."

The Standard & Poor's/TSX Composite Index rose 34.49, or 0.3 percent, to 13,632.01. The benchmark declined 0.3 percent this week and has fallen 0.6 percent from its record of 13,711.96 on April 18.

Statoil is buying North American Oil Sands to help replace dwindling production from the North Sea to Venezuela. The purchase will give Statoil control over oil-sands leases in Alberta, Canada, it said in a statement on the Oslo exchange. The cost of developing the assets will be between $12 billion and $15 billion, Statoil said.

Suncor added $1.57, or 1.7 percent, to C$91.76. Canadian Natural Resources, Canada's second largest gas producer, gained 84 cents to C$67.60.

The rising price of oil also boosted energy companies. Crude surged to the highest in almost eight months in New York and gasoline jumped after Saudi Arabian authorities said they had arrested more than 170 people suspected of plotting to attack the country's oil fields.

Crude for June delivery surged $1.40, or 2.2 percent, to settle at $66.46 a barrel at 2:52 p.m. on the New York Mercantile Exchange.