- MEG Energy (TSX:MEG) shareholders approved Cenovus Energy’s (TSX:CVE) acquisition plan with 86.15 per cent support
- Offer increased to C$30.00 per MEG share under a second amending agreement, based on Cenovus’s October 24 closing price
- Strathcona Resources (TSX:SCR) agreed to support the deal and will acquire certain Cenovus assets for C$150 million as part of the arrangement
- MEG Energy stock (TSX:MEG) last traded at C$28.35
MEG Energy (TSX:MEG) announced that its shareholders have overwhelmingly approved the plan of arrangement with Cenovus Energy (TSX:CVE) at a special meeting held earlier this week. The transaction marks a significant step toward combining two major players in Canada’s energy sector.
As detailed in a media release, at the meeting, MEG shareholders voted in favour of the special resolution approving the Cenovus transaction, with 86.15 per cent of votes cast in support. After excluding shares held by Strathcona Resources Ltd., the resolution still passed with 83.35 per cent approval, underscoring broad shareholder backing.
As part of the process, MEG and Cenovus entered into a second amending agreement to increase the consideration payable to MEG shareholders to C$30.00 per share, based on Cenovus’s closing price on October 24, 2025. This amendment builds on the original arrangement agreement dated August 21, 2025, and its first amendment on October 7, 2025.
In a related development, Cenovus secured a support agreement with Strathcona Resources (TSX:SCR), which holds approximately 36.1 million MEG shares (14.2 per cent of outstanding shares). Strathcona agreed to vote all its shares in favour of the acquisition. At the same time, Cenovus agreed to sell certain assets to Strathcona, including the Vawn thermal heavy oil asset in Saskatchewan and undeveloped lands in Saskatchewan and Alberta, for C$150 million.
Even the tempting offer from Strathcona’s team couldn’t sway MEG shareholders.
MEG Energy Corp. is focused on sustainable in situ thermal oil production in the southern Athabasca oil region of Alberta.
Cenovus Energy Inc. has oil and natural gas production operations in Canada and the Asia Pacific region and upgrading, refining and marketing operations in Canada and the United States.
MEG Energy stock (TSX:MEG) closed 1.02 per cent higher, last traded at C$28.35.
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