CALGARY – Cenovus Energy Inc. says its cash-and-stock bid for MEG Energy Corp. offers a premium valuation and certainty over a rival all-stock offer for the oilsands company by Strathcona Resources Ltd.
In a presentation advocating for its friendly deal, Cenovus says it brings scale, experience and technology to capture meaningful synergies with MEG.
It argues the Strathcona deal carries significant downside risk if that company’s shares drop once the deal is complete.
The MEG board has unanimously recommended shareholders back the Cenovus deal over the Strathcona proposal. However, Strathcona has called the Cenovus deal “lopsided” and the MEG board’s sale process “broken” for accepting it.
The Cenovus offer must be approved by a two-thirds majority vote by MEG shareholders expected to be held on Oct. 9. Strathcona has said it intends to vote its 14.2 per cent interest in MEG against the deal.
Cenovus and MEG have side-by-side oilsands properties at Christina Lake, south of Fort McMurray, Alta., while Strathcona also has operations in the region.
This report by The Canadian Press was first published Sept. 19, 2025.