Cenovus Energy Inc. to Acquire MEG Energy Corp. in $7.9 Billion Deal
In a significant move within the Canadian oil and gas sector, Cenovus Energy Inc. has announced its definitive agreement to acquire MEG Energy Corp. for a total value of $7.9 billion, including assumed debt. This strategic acquisition, announced on August 22, 2025, positions Cenovus as a formidable player among Canada’s top oil producers.
The deal, structured as a cash-and-stock transaction, offers MEG shareholders $27.25 per share. This price represents a 33% premium over MEG’s unaffected 20-day volume-weighted average share price as of May 15, 2025. Shareholders will receive 75% of the consideration in cash and 25% in Cenovus common shares, providing them with near-term value certainty and the opportunity to participate in the upside of a leading industry producer.
This acquisition comes after an unsolicited offer from Strathcona Resources Ltd. in May, which MEG’s board urged shareholders to reject. MEG’s chairman, James McFarland, emphasized that the special committee’s decision to accept Cenovus’s offer was in the best interest of the company and its shareholders.
The transaction is expected to accelerate and de-risk the realization of value from MEG’s standalone plan, offering significant scale and growth potential. The MEG Board of Directors unanimously approved the deal and recommends that shareholders vote in favor of the transaction at a special meeting.
Cenovus’s acquisition of MEG Energy underscores its commitment to strengthening its position in the oil sands sector. The combined entity will benefit from enhanced operational efficiencies and a more robust portfolio of assets, setting the stage for future growth and value creation.
As the deal progresses, it will be closely watched by industry analysts and investors, given its potential to reshape the competitive landscape in Canada’s energy sector.