Strathcona Resources Upgrades Offer for MEG Energy in Hopes to Outbid Rival Cenovus Energy
By Adriano Marchese
Strathcona Resources has come back to MEG Energy with a new offer to buy the company at a higher price than the current offer by Cenovus Energy.
The Alberta-based energy company on Monday said it is offering to acquire all the shares it doesn't currently own for 0.80 of a common share of Strathcona for each MEG Energy share. The offer represents about 30.86 Canadian dollars, or $22.32, per MEG Energy share.
In May, Strathcona made an offer for MEG Energy, which the MEG board advised shareholders not to accept. MEG later accepted a C$7.9 billion buyout offer from Cenovus.
Strathcona said that the new offer represents an 11% premium over Cenovus' offer.
Strathcona has been buying up MEG Energy shares to position itself to oppose rival Cenovus' buyout of the Canadian oil sands producer. Most recently, it acquired 6.03 million shares of MEG, taking its stake to 14.2% for about C$172.7 million.
Strathcona still expects to vote against the tie-up between MEG Energy and Cenovus at the special meeting of shareholders on Oct. 9.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
September 08, 2025 07:06 ET (11:06 GMT)
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