The Toronto stock market was sharply lower amid concerns that Spain will need a full-scale sovereign bailout while traders took in two major acquisitions in the Canadian energy sector.China National Offshore Oil Company is picking up Calgary-based oil and gas producer Nexen for US$15.1 billion in cash. And Talisman Energy is selling its 49 per cent interest in U.K. North Sea assets to Chinese firm Sinopec for $1.5 billion.The S&P/TSX composite index tumbled 172.13 points to 11,450.78 as the yield on Spain’s benchmark 10-year bond surged to 7.56 per cent.If Spain’s borrowing rates continue to rise then Spain may end up being locked out of international markets and be forced to seek a financial rescue.The Canadian dollar was down 69-100ths to 98.06 cents US.The Dow Jones industrials fell 218.57 points to 12,604. The Nasdaq composite index lost 65.96 points to 2,859.34 and the S&P 500 index was down 22.42 points to 1,340.24.