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4h ago

Strathcona to Lift MEG Stake to 14.2% as It Seeks to Block Cenovus’s MEG Deal

Cenovus holds a board‑backed C$7.9 billion cash‑stock agreement that requires two‑thirds shareholder approval on Oct. 9.

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Overview

  • Strathcona said it will buy an additional 5% of MEG shares, taking its holding to about 14.2%, and will vote against the Cenovus acquisition.
  • MEG shareholders are scheduled to vote on Oct. 9, with the transaction needing at least 66 2/3% of votes cast to pass.
  • Cenovus’s offer is valued at C$27.25 per MEG share, structured as 75% cash and 25% stock, with unanimous board approval from both companies.
  • Cenovus expects closing in the fourth quarter of 2025, subject to regulatory clearances and the required shareholder vote.
  • Strathcona’s earlier hostile proposal of 0.62 shares plus $4.10 per MEG share is currently estimated by ATB Capital Markets at about C$28.17 per share, above the Cenovus terms.