Cenovus Energy has entered into an agreement with MEG Energy to acquire the company.
Cenovus will acquire all issued and outstanding common shares at $27.25 per share. The shares will be paid for 75 per cent in cash and 25 per cent in Cenovus shares.
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The proposed transaction represents a MEG enterprise value of $7.9 billion. Strathcona Resources Ltd. previously made an offer to acquire MEG.
“After considering the Strathcona unsolicited offer, engaging with multiple parties on proposals, and assessing them against MEG’s standalone plan, the Special Committee and the MEG board unanimously concluded the proposed transaction with Cenovus represents the best strategic alternative, with short- and long-term value creation potential through a premium purchase price, an amalgamation of adjacent top-tier oil sands assets and participation in significant associated synergies,” said James McFarland, chairman of MEG’s board of directors in a statement.
MEG’s shareholders will vote on the Cenovus transaction at a special meeting held in early October. To be approved, it will require at least 66.66 per cent of the votes cast at the meeting.
The deal is expected to close early in the fourth quarter of 2025, subject to customer approvals.
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