MEG meeting on Cenovus deal postponed another week

CALGARY – A MEG Energy Corp. shareholder vote on the proposed takeover by Cenovus Energy Inc. has been delayed another week. 

MEG board chair James McFarland twice paused the meeting Thursday to address a last-minute “regulatory inquiry” before adjourning it until Nov. 6.

It’s the latest twist in a bitter months-long takeover fight that pitted oilsands giant Cenovus against smaller rival bidder Strathcona Resources Ltd.

Strathcona dropped its all-stock bid earlier this month and on Monday pledged it would vote its 14 per cent stake in MEG in favour of a sweetened offer from Cenovus.

Also Monday, Cenovus announced the sale of its Vawn thermal heavy oil operation in Saskatchewan and certain undeveloped land in western Saskatchewan and Alberta to Strathcona for $150 million including $75 million in cash paid on closing and up to $75 million more, depending on future commodity prices.

“This meeting is being adjourned with Cenovus’ consent so MEG can disclose additional information on the previously announced asset transaction between Strathcona Resources Ltd. and Cenovus and related process of the MEG board,” said McFarland. 

The saga began in April when Strathcona approached the MEG board with a cash-and-stock takeover bid. Strathcona was rebuffed and took the offer directly to MEG shareholders weeks later. 

In June, MEG’s board called the bid “opportunistic” and urged shareholders to reject it as it launched a review to find a superior offer. Waterous had accused MEG of refusing to engage and taking an “anyone but Strathcona” stance. 

In August, MEG announced its board had accepted a friendly takeover offer from Cenovus. The following month, Strathcona amended its offer to one based entirely on stock, arguing that structure would give investors greater opportunity to benefit from future growth. 

Cenovus upped its bid and offered a greater equity share in early October, and the companies agreed to allow Cenovus to buy up to 9.9 per cent of the target company’s stock ahead of the shareholder vote. 

Strathcona abandoned its bid a few days later, saying the conditions of its offer could no longer be satisfied, while some MEG shareholders decried what they saw as unfair tactics to lock up the deal with Cenovus. 

Cenovus and MEG have side-by-side oilsands properties at Christina Lake, south of Fort McMurray, Alta., and the companies have touted the cost-savings and efficiencies that would result from joining forces. Strathcona also has steam-driven operations in the region.

The deal would add 110,000 barrels of daily oilsands production to Cenovus’ portfolio, bringing it to 720,000 boe/d. Cenovus has said output could grow to 850,000 boe/d in 2028.

This report by The Canadian Press was first published Oct. 30, 2025.

Companies in this story: (TSX:MEG) (TSX:SCR) (TSX:CVE)