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4h ago

MEG Shareholders Back C$8.6 Billion Cenovus Takeover With 86% Support

Only final approvals remain before closing.

The plant — where steam is created, water is processed, and bitumen is diluted and prepared to go for further processing — at the Cenovus Christina Lake oilsands facility southeast of Fort McMurray, Alta., on Wednesday April, 24, 2024. THE CANADIAN PRESS/Amber Bracken
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Overview

  • The special meeting followed three adjournments triggered by revised bids and a securities inquiry into a Cenovus–Strathcona asset transaction.
  • Strathcona, which holds 14.2% of MEG, agreed to support the deal after arranging to buy Cenovus’s Vawn thermal facility and other assets for up to C$150 million.
  • The offer was sweetened to roughly C$8.6 billion and lets MEG investors elect cash or Cenovus shares within an intended 50/50 mix.
  • The companies say they expect to close this month, subject to clearance from the Competition Bureau and the Alberta Energy Regulator and final court approval.
  • Combining adjacent Christina Lake properties would add about 110,000 barrels per day to Cenovus’s output, with the companies citing cost savings and efficiencies.