Cenovus Energy has agreed to acquire MEG Energy in a C$6.93 billion cash-and-stock deal, creating one of Canada’s largest oil sands producers.
Under the agreement, MEG shareholders will receive C$27.25 per share in cash or 1.325 Cenovus shares for each MEG share they own, News.Az reports, citing Reuters.
The deal follows a C$5.93 billion hostile takeover attempt by Strathcona Resources earlier this year, which MEG’s board rejected as “inadequate.” Instead, MEG launched a strategic review, ultimately paving the way for Cenovus to step in as a so-called “white knight” bidder.
The acquisition will expand Cenovus’ presence in the oil sands, strengthening its position as one of the country’s energy leaders. Analysts had previously speculated Cenovus would emerge as a potential buyer.
The combined company is expected to benefit from economies of scale and greater resilience amid fluctuating global energy prices.