Energy

Cenovus to Buy MEG Energy in $5 Billion Oil-Sands Deal

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By Robert Tuttle and Paula Sambo

August 22, 2025 at 10:32 AM UTC

Updated on

August 22, 2025 at 4:13 PM UTC

Cenovus Energy Inc. agreed to buy MEG Energy Corp. for C$6.93 billion ($5 billion), topping a rival offer from Strathcona Resources Ltd. in a bid to boost its position among Canada’s largest oil producers.

The deal values MEG at C$27.25 a share and calls for Cenovus to pay three-quarters in cash and a quarter in stock, according to a statement Friday. Cenovus expects the acquisition to close in the fourth quarter, subject to regulatory and shareholder approvals. The total value of the deal is C$7.9 billion, including debt.