The Financial Post reports in its Tuesday, Oct. 28, edition that Cenovus Energy has struck a side deal with Strathcona Resources in a move to clear away any remaining objections to the oil sands major's takeover bid for MEG Energy ahead of Thursday's shareholder vote.
The Post's Meghan Potkins writes that in a release Monday morning, Cenovus announced it had amended its agreement to acquire MEG -- though the 50-per-cent stock, 50-per-cent cash offer to shareholders appeared unchanged, currently valuing MEG at $30 per share, or $8.6-billion in total, based on Friday's closing price.
The key change appears to be a new agreement with rival suitor Strathcona aimed at securing voting support for Cenovus's takeover.
Strathcona -- MEG's largest shareholder with a 14.2-per-cent interest in the company -- had previously threatened to vote against the deal.
Under a new agreement with Cenovus, Strathcona is set to purchase Cenovus's Vawn thermal project and undeveloped heavy oil properties at Lindbergh, Plover Lake and Glenbogie for $150-million -- $75-million up front, and a further $75-million, depending on future oil prices.
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