CALGARY — Cenovus Energy Inc. has raised its takeover offer for MEG Energy Corp. again, winning the support of Strathcona Resources Ltd., which had opposed the deal.
Under the sweetened bid, Cenovus is offering $30 in cash or 1.255 Cenovus shares for each MEG share with limits of $3.8 billion in cash and 159.6 million shares available under the offer.
The proposal is up from an earlier offer of $29.50 in cash or 1.240 Cenovus common shares for each MEG share with limits of $3.8 billion in cash and 157.7 million shares available.
MEG shareholders will vote on the offer, which has the support of the MEG board, on Thursday.
“With Strathcona’s support, MEG currently expects that approximately 79 per cent of the MEG shares represented by proxy or expected to be voted in person at the meeting are for the approval of the improved Cenovus transaction,” MEG said in a statement.
A vote by MEG shareholders on the takeover offer scheduled for last week was delayed after it appeared it might fall short of the required two-thirds majority for approval.
However, Cenovus announced Monday it had now secured the support of Strathcona, which owns a 14.2 per cent stake in MEG and recently dropped its own hostile all-stock offer for the company.
Cenovus and MEG have side-by-side oilsands properties at Christina Lake, south of Fort McMurray, Alta., while Strathcona also has operations in the region.
Cenovus also announced the sale of its Vawn thermal heavy oil operation in Saskatchewan and certain undeveloped land in western Saskatchewan and Alberta to Strathcona for $150 million including $75 million in cash paid on closing and up to $75 million in contingent consideration dependent on future commodity prices.
This report by The Canadian Press was first published Oct. 27, 2025.