Overview

• Strathcona Resources has launched a C$5.93 billion cash-and-stock takeover bid for MEG Energy, valuing MEG shares at C$23.27 each.
• The MEG board is reviewing the offer, which follows Strathcona's acquisition of a 9.2% stake in the company through open-market purchases.
• If successful, the merger would create Canada’s fifth-largest oil producer and fourth-largest steam-assisted gravity drainage operator.
• Strathcona recently sold its Montney gas and light oil assets for C$2.84 billion and acquired the Hardisty rail terminal for C$45 million to focus on heavy oil production.
• The company projects C$175 million in annual synergies from the MEG acquisition, including cost reductions and operational efficiencies.