Cenovus Energy Inc. said on Wednesday it had built up a 9.8% stake in MEG Energy over the past week, days before MEG shareholders are expected to vote on a Cenovus takeover offer that could put an end to a two-month-long bidding war.
Cenovus Energy on Wednesday revealed it had bought an additional 3,276,460 common shares of MEG Energy through the facilities of the Toronto Stock Exchange or other Canadian alternative exchanges or markets.
Following the latest acquisition, Cenovus beneficially owned, directly or indirectly, and exercised control or direction over, a total of of 25,000,000 MEG common shares, which represent 9.8% of all MEG common shares issued and outstanding. All of Cenovus’ share acquisitions have been made since October 8, 2025.
On October 8, Cenovus sweetened its takeover offer for MEG Energy in the best and final offer to buy the company that has seen rival bids from Cenovus and Strathcona Resources in recent months.
Last week, Cenovus announced the sweetened offer for MEG Energy shareholders, which values the target company at US$6.16 billion (C$8.6 billion) including debt.
MEG’s board recommended last month that MEG shareholders vote in favor of a deal with Cenovus and reject Strathcona’s amended and extended takeover bid.
To allow MEG shareholders time to consider and vote on the sweetened Cenovus offer, the special meeting of MEG shareholders scheduled for October 9, 2025 was postponed to October 22, 2025.
Cenovus’ rival in the bidding war, MEG’s shareholder Strathcona Resources with a 14% stake, terminated its takeover pursuit on Friday.
Cenovus said today that the acquisitions of MEG shares were made “in furtherance of its previously announced transaction with MEG.”
“To the extent Cenovus is able, the company intends to vote any acquired shares in favour of the transaction,” the prospective buyer said.
One of the most unusual bidding wars in Canada’s oil patch signaled there is another way for a company to boost its production and resources – through consolidation – than investing in new oil sands production, which is considered the world’s most expensive source of new oil supply.
By Michael Kern for Oilprice.com
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