MEG Energy Shares Jump as Cenovus Upgrades the Ante

By Adriano Marchese

MEG Energy shares rose Wednesday morning after Cenovus Energy sweetened its offer to buy out the company as it looks to stave off rival Strathcona Resources.

Shares traded 4.9% higher at 29.63 Canadian dollars ($21.24).

Under the new terms, Cenovus has offered C$29.50 cash offer per MEG share, up from the previous C$27.25 back in mid-September. Additionally, each MEG shareholder will have the option to receive either the C$29.50 in cash or 1.240 Cenovus shares for each MEG share held.

For Cenovus, the offer would be split to a maximum of C$3.8 billion in cash and a maximum of 157.7 million Cenovus shares, or an even split between stock and cash.

The new offer comes as MEG Energy is courted by another Canadian energy company, Strathcona Resources, an offer it had rejected in favor of a deal with Cenovus. But Strathcona wasn't going to sit on the sidelines. The company has been buying up MEG shares to build up a stake which it wants to use to throw its weight around at shareholder-voting time. Most recently, it has acquired 6.03 million shares of MEG, raising its stake to 14.2%, for about C$172.7 million.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 08, 2025 10:09 ET (14:09 GMT)