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Strathcona Resources Ltd. says it plans to expand its minority stake in MEG Energy Corp. after its bid for a hostile takeover of the company was spurned in favour of a friendly cash-and-stock purchase offer from Cenovus Energy Inc.
Strathcona says it plans to purchase an additional five per cent of MEG’s outstanding common shares, which would build upon its current 9.2 per cent stake.
It also says it plans to vote against an upcoming resolution to approve Cenovus’ $7.9-billion deal to acquire MEG, scheduled to be held at a special meeting of MEG shareholders on Oct. 9.
The deal must be approved by a two-thirds majority of MEG shareholders.
Cenovus had been floated by industry watchers as the most likely company to launch a competing bid against Strathcona because it and MEG have side-by-side oilsands properties at Christina Lake south of Fort McMurray, Alta., that could be more efficient together.
Cenovus said earlier this month the deal represents a unique opportunity to acquire about 110,000 barrels per day of production adjacent to its operations, and that combining with MEG would bring its total oilsands production to 720,000 barrels per day, growing to 850,000 in 2028.
This report by The Canadian Press was first published Aug. 29, 2025.
Companies in this story: (TSX:SCR, TSX:MEG, TSX:CVE)
The Canadian Press
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