Cenovus Energy Inc. (CVE) Friday said it has agreed to acquire MEG Energy Corp. (MEG) in a cash and stock deal valued at $7.9 billion.
As per the deal, Cenovus will acquire MEG for $27.25 per share, to be paid 75% in cash and 25% in Cenovus shares. MEG shareholders can opt to receive either $27.25 in cash or 1.325 Cenovus shares for each MEG share they own.
Cenovus expects the deal to bring in more than $400 million of annual synergies from 2028 onwards, with $150 million to realize in the near-term. The acquisition is expected to immediately add to adjusted funds flow and free funds flow.
Upon combination of the two SAGD oil sands producers, the combined oil sands production will be more than 720,000 barrels per day (bbls/d).
The company also said it has obtained fully committed financing for the transaction consisting of a $2.7 billion term loan facility and a $2.5 billion bridge facility, which will be used to fund the cash component of the transaction.
"This transaction represents a unique opportunity to acquire approximately 110,000 barrels per day of production within some of the highest quality, longest-life oil sands resource in the basin, which sits directly adjacent to our core Christina Lake asset," said Jon McKenzie, Cenovus President & Chief Executive Officer. "The magnitude of synergies that we have identified makes this a compelling value creation opportunity for Cenovus shareholders." The deal is expected to close in the fourth quarter of 2025.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.