Strathcona Resources Ltd. has formally withdrawn its takeover bid for MEG Energy Corp., citing new terms in MEG’s revised agreement with Cenovus Energy Inc. that render the proposed acquisition no longer feasible.
The company said the conditions necessary to complete its offer—or any reasonable improvement on it—can no longer be met following actions by the MEG board of directors, which recently endorsed a revised arrangement with Cenovus.
According to Strathcona, the MEG board’s decision to waive Cenovus’ standstill agreement and permit the company to vote shares acquired after the record date in favor of its own transaction was “without precedent” in Canadian public markets. The board’s ability to repeatedly extend the Cenovus meeting date and allow ongoing share purchases by Cenovus was described as making any improved offer “impractical and not in the best interests” of Strathcona shareholders.
While expressing disappointment with the outcome, Strathcona stated that its efforts, along with those of fellow MEG shareholders, led to what it views as a more equitable deal between MEG and Cenovus—one that allows MEG shareholders to participate more meaningfully in the company’s future growth.
The company confirmed that the offer has been terminated effective immediately, in accordance with the terms of the May 30, 2025, take-over bid circular and subsequent amendments. No MEG shares will be taken up under the offer, and all tendered shares will be promptly returned to shareholders.
Above image: MEG Energy production operations at Christina Lake oil sands site
