MEG-Cenovus deal clears key shareholder vote after delays

Lauren Krugel · The Canadian Press

· Posted: Nov 06, 2025 11:36 AM EST | Last Updated: November 6

Three ballot delays, 2 sweetened bids and countless different twists and turns later, shareholders successful MEG Energy Corp. person fixed their blessing to an $8.6-billion takeover by Cenovus Energy Inc.

More than 86 per cent of shares were voted successful favour of the deal, good supra the two-thirds bulk required for it to pass, MEG president James McFarland told a peculiar gathering connected Thursday.

He thanked shareholders for their "patience implicit the past mates of weeks."

The gathering was initially expected to beryllium held connected Oct. 9, but was enactment disconnected for 2 weeks erstwhile Cenovus rejigged its connection for the archetypal time. It was past postponed different week erstwhile it appeared that connection inactive did not person capable shareholder enactment to pass. Then past week, a gathering to measurement the connection — sweetened for a 2nd clip — was adjourned until Thursday owed to a last-minute regulatory complaint.

WATCH | What the woody means for Canada's lipid and state industry :

The saga began successful April erstwhile different company, Strathcona Resources Ltd., approached the MEG committee with a cash-and-stock takeover bid. Strathcona was rebuffed and took the connection straight to MEG shareholders weeks later.

In June, MEG's committee called the bid "opportunistic" and urged shareholders to cull it arsenic it launched a reappraisal to find a superior offer. Strathcona enforcement president Adam Waterous accused MEG of refusing to prosecute and taking an "anyone but Strathcona" stance.

In August, MEG announced its committee had accepted a affable takeover connection from Cenovus. The pursuing month, Strathcona amended its connection to 1 based wholly connected stock, arguing that operation would springiness investors greater accidental to payment from aboriginal growth.

Cenovus, saying it was heeding shareholder feedback, upped its bid and offered a greater equity stock successful aboriginal October.

Strathcona abandoned its bid a fewer days later, saying the conditions of its connection could nary longer beryllium satisfied.

Last week, Cenovus again accrued its connection and Strathcona agreed to ballot its 14.2 per cent MEG involvement successful favour of the deal.

The aforesaid day, those companies announced Strathcona had agreed to bargain the Vawn thermal dense lipid cognition successful Saskatchewan from Cenovus and immoderate undeveloped properties successful occidental Saskatchewan and Alberta for up to $150 million.

That side-deal was the ground for the astir caller ballot delay, arsenic McFarland said much clip was needed to disclose accusation to MEG shareholders. Cenovus CEO John McKenzie aboriginal said a erstwhile MEG worker with 4,000 shares had lodged an unspecified complaint.

Cenovus and MEG person side-by-side oilsands properties astatine Christina Lake, southbound of Fort McMurray, Alta., and the companies person touted the cost-savings and efficiencies that would effect from joining forces. Strathcona besides has steam-driven operations successful the region.

The woody would adhd 110,000 barrels of regular oilsands accumulation to Cenovus's portfolio, bringing it to 720,000 boe/d. Cenovus has said output could turn to 850,000 boe/d successful 2028.