After multiple postponements and bid adjustments, MEG Energy Corp. shareholders have endorsed a $8.6-billion acquisition by Cenovus Energy Inc. The approval, with over 86% of shares in favor, surpassing the required two-thirds majority, was announced by MEG chairman James McFarland at a special meeting.
Initially scheduled for October 9, the meeting was deferred twice due to modifications in Cenovus’s offer and lack of sufficient shareholder support. The final approval was delayed further due to a regulatory issue. The process began in April when Strathcona Resources Ltd. initiated a takeover bid, which was rebuffed by MEG. In August, MEG accepted Cenovus’s friendly offer, prompting Strathcona to revise its bid to stock-based, which was later withdrawn.
Cenovus, in response to shareholder feedback, increased its offer multiple times, eventually leading to Strathcona agreeing to support the deal and acquiring assets from Cenovus. The acquisition is expected to enhance Cenovus’s daily oilsands production by 110,000 barrels, aiming for 850,000 boe/d by 2028. The companies anticipate cost efficiencies from their adjacent oilsands properties in Alberta.
