Cenovus Energy is raising its takeover bid for MEG Energy in the best and final offer to buy the company that has seen rival bids from Cenovus and Strathcona Resources in recent months.
Cenovus announced on Wednesday a sweetened offer for MEG Energy shareholders, which values the target company at US$6.16 billion (C$8.6 billion) including debt.
The fully pro-rated consideration for MEG represents a value of approximately US$21.37 (C$29.80) per MEG share at Cenovus’s closing share price on October 7, 2025, an increase of approximately US$0.95 (C$1.32) per share compared to the terms of the original arrangement agreement.
MEG Energy has agreed to be acquired by Cenovus and has rejected a rival bid from Strathcona Resources, which has sought to derail the Cenovus-MEG deal with its own sweetened offers.
However, MEG’s board recommended last month that MEG shareholders vote in favor of a deal with Cenovus and reject Strathcona’s amended and extended takeover bid.
The offer from Cenovus announced today “represents Cenovus’s best and final offer for MEG,” the company said.
“We received support from the majority of MEG’s shareholders for our transaction. However, many MEG shareholders indicated that they would prefer to receive greater Cenovus share consideration, so that they can more fully participate in the upside of the combined company,” Jon McKenzie, Cenovus president and chief executive officer, said in a statement.
“We listened to these comments and have changed the consideration under our offer to a maximum of 50% cash and 50% Cenovus shares, while increasing the aggregate purchase price,” McKenzie added.
“We believe this Amended Agreement delivers compelling and superior value to MEG shareholders and we encourage every MEG shareholder to vote their shares in favour.”
To allow MEG shareholders time to consider and vote on the Amended Agreement, the special meeting of MEG shareholders scheduled for October 9, 2025 has been postponed to October 22, 2025.
By Tsvetana Paraskova for Oilprice.com
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