Cenovus Energy Boosts MEG Energy Stake to 9.8% Amid Takeover Bid

Cenovus Energy Inc. has increased its stake in MEG Energy Corp. to 9.8 per cent as part of its ongoing efforts to complete a friendly takeover of the company. The Calgary-based firm has acquired approximately 3.28 million additional shares, raising its total holdings to 25 million MEG shares. This strategic move follows the recent withdrawal of Strathcona Resources Ltd.’s competing takeover offer for MEG.

The takeover bid values MEG Energy at $8.6 billion, which includes assumed debt. The offer consists of a combination of cash and stock, split evenly between the two. MEG shareholders are expected to vote on this proposal on October 22, 2025.

Both Cenovus and MEG operate neighbouring oilsands properties in the Christina Lake area, located south of Fort McMurray, Alberta. This proximity has likely facilitated Cenovus’s interest in expanding its holdings in MEG, a company known for its significant resources in the region.

Cenovus has positioned itself as a key player in the Canadian oil market, and this acquisition aligns with its growth strategy. Analysts suggest that the combination of the two companies could enhance operational efficiencies and create synergies that benefit shareholders in the long run.

The recent developments have sparked discussions among investors regarding the future of both companies. As the vote date approaches, stakeholders are keenly observing how this potential merger will unfold and what it means for the Canadian energy landscape.

This report was initially published by The Canadian Press on October 15, 2025.