Strathcona Resources Terminates Take-Over Bid for MEG Energy

By Kelly Cloonan

Strathcona Resources terminated its take-over bid for MEG Energy, days after rival Cenovus Energy upped its offer to buy out the Canadian oil-sands producer and changed the terms of their standstill agreement.

The conditions of its takeover offer can no longer be satisfied due to the revised arrangement between MEG's board and Cenovus, Strathcona said Friday. On Wednesday, the two parties said they have changed the terms to their existing standstill agreement, which would allow Cenovus to go through with buying up to 9.9% of MEG's shares to use in favor of counteracting Strathcona's vote.

That decision "is without precedent in the Canadian public markets," and joins a series of anti-competitive actions from MEG's board, Strathcona said.

The company had been buying up MEG shares to position itself to oppose Cenovus's buyout bid at the next shareholder meeting.

Strathcona said it believes an improved offer for MEG would be impractical given the MEG board's ability to continuously extend the Cenovus meeting date and allow Cenovus to purchase and vote additional shares.

"While Strathcona is disappointed with this outcome, it is pleased that its actions, along with those of its fellow MEG shareholders, delivered something which the MEG Board could not, namely a more equitable transaction with Cenovus which allows MEG shareholders to participate more meaningfully in future upside," Strathcona said.

Cenovus on Wednesday also raised its cash offer per MEG share to 29.50 Canadian dollars ($21.15), up from the previous C$27.25 back in mid-September.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

October 10, 2025 17:38 ET (21:38 GMT)