Cenovus Energy (TSX: CVE) (NYSE: CVE) announced that it has entered into a definitive agreement to acquire MEG Energy Corp. (TSX: MEG) in a cash and stock deal valued at C$7.9 billion ($5.7bn),
The acquisition brings together two top Alberta oil sands producers with combined production of over 720,000 barrels per day and the largest land base in the best quality resource area in the basin, Cenovus said in a news release.
The deal, announced August 22, ended weeks of speculation that Calgary-based Cenovus would emerge as a white knight for MEG, which was facing a hostile takeover attempt.
Under the terms, Cenovus will acquire all of the issued and outstanding common shares of MEG for C$27.25 per share, which will be paid 75% in cash and 25% in Cenovus common shares.
The acquisition consolidates adjacent, contiguous assets at Christina Lake, enabling integrated development of the region…
