CALGARY – Cenovus Energy Inc. has signed a cash-and-stock deal to buy MEG Energy Corp. that values the company at $7.9 billion, including debt.
The deal comes after Strathcona Resources Ltd. made an unsolicited offer for MEG in June that the company urged shareholders to reject.
MEG chairman James McFarland says the Cenovus deal represents the best strategic alternative for the company.
Under the agreement, MEG shareholders can receive $27.25 in cash or 1.325 Cenovus common shares for each MEG share, subject to limits on the total about of cash and shares available.
The total value payable under the deal represents a mix of 75 per cent cash and 25 per cent in Cenovus shares.
The deal must be approved by a two-thirds majority vote by MEG shareholders expected to be held in October.
This report by The Canadian Press was first published Aug. 22, 2025.