Cenovus Energy has stepped up its bid for MEG Energy by raising its offer to C$8.6bn, including debt.

This move comes amid a competitive takeover battle with Strathcona Resources for the Canadian oil producer.

The revised bid values MEG at approximately C$29.80 per share, which Cenovus stated is its "best and final" offer.

In comparison, Strathcona Resources' revised offer last month valued MEG at C$30.86 per share.

Despite Strathcona owning 14% of MEG, Cenovus’ board has urged shareholders to reject Strathcona's bid, describing it as "fundamentally unattractive".

MEG's board has reaffirmed its support for Cenovus' offer.

Cenovus' latest offer follows an earlier statement that its August bid was fair.

The battle for MEG, one of Canada's last large pure-play oil sands companies, highlights the strategic importance of its Christina Lake oil sands project. The project is valued for its long reserve life, low operating costs and production growth potential, reported Reuters.

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 combined company.

In addition, the companies have updated their standstill agreement to permit Cenovus to purchase up to 9.9% of MEG’s shares prior to the merger vote.

MEG's shareholder meeting has been postponed to 22 October from 9 October to give investors more time to review the amended proposal.

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 (boepd) in the third quarter of 2025 (Q3 2025).