Cenovus Energy has acquired approximately 21.7 million common shares of MEG Energy, bolstering its position ahead of a merger vote.
Since 8 October, Cenovus has acquired approximately 8.5% of MEG’s 254.4 million outstanding shares and is permitted to purchase up to 9.9% of MEG shares prior to the merger vote, as outlined in a revised standstill agreement between the two companies.
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MEG’s board has approved Cenovus’ bid of C$8.6bn ($6.11bn), including debt.
However, the deal requires support from at least two-thirds of investors to proceed, reported Reuters.
The MEG shareholder meeting has been rescheduled from 9 October to 22 October, allowing investors more time to review the amended proposal.
Cenovus recently raised its bid to outpace Strathcona Resources in acquiring MEG.
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By GlobalDataThe revised bid values MEG at approximately C$29.80 per share, which Cenovus has declared as its “best and final” offer.
Strathcona’s previous offer valued MEG at C$30.86 per share.
Despite Strathcona owning 14% of MEG, Cenovus’ board urged shareholders to reject Strathcona’s bid, labelling it as “fundamentally unattractive”.
Cenovus has revised its offer structure, moving from 75% cash and 25% stock to an even 50-50 split of cash and shares. The change is intended to give MEG investors more potential upside in the merged entity.
The deal is expected to close in the fourth quarter of 2025 (Q4 2025).
Strathcona has withdrawn its takeover bid for MEG, ending its months-long contest with Cenovus.
The takeover saga commenced in May when Strathcona initiated a hostile bid of C$5.93bn for MEG, prompting Cenovus to respond with a more lucrative cash-and-stock offer valued at C$7.9bn in August.
A successful acquisition of MEG, which produces roughly 100,000 barrels of crude oil per day, would strengthen Cenovus’ presence as a major operator in Alberta’s Christina Lake region.
Cenovus reported upstream production of around 832,000 barrels of oil equivalent per day in Q3 2025.
