Cenovus has acquired about 8.5% of MEG’s 254.4 million outstanding shares since October 8, and can purchase up to 9.9% of MEG shares ahead of the merger vote, according to a revised standstill agreement between the companies.
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MEG’s shareholder meeting has been postponed to October 22 from October 9 to allow investors more time to review the amended Cenovus proposal.
Cenovus also amended its deal structure, shifting to a 50-50 mix of cash and shares, up from 75% cash and 25% stock, giving MEG investors a greater upside in the combined company.
The deal is expected to close early in the fourth quarter of 2025.
MEG’s Christina Lake oil sands project remains an important asset for its long reserve life, low operating costs and potential for production growth.
It is one of the few large-scale expansion opportunities in Canada’s oil sands that is now dominated by a small group of domestic players, following the exit of most foreign companies over the past decade.
($1 = 1.4070 Canadian dollars)
Reporting by Pooja Menon in Bengaluru; Editing by Shinjini Ganguli
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