US EditionCanadian oil producer Strathcona to launch $5.93-billion hostile bid for MEG Energy
- In May 2025, Strathcona Resources Ltd. Initiated a $5.93-billion unsolicited all-cash-and-stock offer to acquire MEG Energy Corp., aiming to merge the two Alberta-based bitumen producers.
- Strathcona pursued this bid after selling $2.84 billion of its Montney shale assets to focus on becoming a pure-play heavy oil company like MEG, reflecting a strategic shift in its operations.
- The offer provides 0.62 Strathcona shares and $4.10 cash per MEG share, valuing MEG at $23.27 per share, a modest premium of about 9.3%, which MEG's board initially rejected.
- Analysts described the bid as “an affront” to MEG shareholders, with MEG shares rising above the offer price amid expectations of a higher bid and probable competition from larger oilsands players.
- If the deal proceeds, it would result in a new oil producer ranking fifth in size across Canada, specializing in steam-assisted bitumen extraction, with anticipated annual cost synergies of approximately $175 million, significantly advancing consolidation efforts in the oilsands sector.
21 Articles
21 Articles
Strathcona Resources aims to join oilsands ‘doppelgangers’ with MEG takeover bid
CALGARY - The executive chairman of Strathcona Resources Ltd. says his company aims to join two complementary oilsands players with its unsolicited takeover bid for MEG Energy Corp., but one
SooToday.com
Strathcona Resources aims to join oilsands 'doppelgangers' with MEG takeover bid
CALGARY — The executive chairman of Strathcona Resources Ltd. says his company aims to join two complementary oilsands players with its unsolicited takeover bid for MEG Energy Corp., but one analyst calls the $5.
Strathcona Makes Takeover Offer for MEG Energy
Strathcona has made an offer to acquire sector player MEG Energy for the equivalent of some $4.25 billion in cash and stock, per Reuters calculations. The offer represents a 9.3% premium to MEG Energy’s closing price on Thursday. “The combination of Strathcona and MEG would unify two 100+ Mbbls/d heavy oil “pure plays” with near identical netbacks and reserve life indexes, both focused on SAGD oil sands development,” Strathcona said in a news re…
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