MEG takeover saga draws to close as Cenovus completes purchase

The plant — where steam is created, water is processed, and bitumen is diluted and prepared to go for further processing — at the Cenovus Christina Lake oilsands facility southeast of Fort McMurray, Alta., on Wednesday April, 24, 2024. The most current steam-assisted gravity drainage (SAGD) technology requires less energy per wellhead to harvest bitumen. THE CANADIAN PRESS/Amber Bracken

CALGARY — Oilsands giant Cenovus Energy Inc. has completed its takeover of MEG Energy Corp.

The two companies had neighbouring properties in the oilsands at Christina Lake, south of Fort McMurray, Alta. With the purchase, Cenovus gets another 110,000 barrels a day of production from what had been MEG’s flagship operation.

“The addition of MEG assets and people will have an immediate positive impact on Cenovus,” Cenovus CEO Jon McKenzie said in a news release Thursday.

“The strategic fit is exceptional, the assets are of the highest quality and the synergies we have identified will create significant value over both the short and long term.”

The deal was worth more than $8.6 billion in cash, shares and assumed MEG debt.

MEG shares are expected to be delisted from the TSX on Friday.

The acquisition’s closing marks the end of a bitter saga that saw Cenovus face off against rival bidder Strathcona Resources Ltd., which ultimately supported a sweetened Cenovus offer.

Cenovus’ largest shareholder, CK Hutchison Holdings Ltd., said it was pleased with the acquisition.

“The close proximity of the two companies’ complementary assets at Christina Lake is poised to create effective synergies,” a spokesperson for the Hong Kong-based conglomerate, which has a decades-long history investing in the oilsands, said in a statement.

This report by The Canadian Press was first published Nov. 13, 2025.

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

The Canadian Press