Cen Vus Energy Inc. announced the completion of its $7.9 billion acquisition of Montrose Environmental Group (MEG) on November 13, 2025, adding 110,000 barrels per day of low‑cost, long‑life oil‑sands production to its portfolio. The transaction, which was financed through a $2.7 billion term loan and a $2.5 billion bridge facility, does not require new equity issuance and positions Cen Vus as one of Canada’s largest oil‑sands operators.
MEG’s assets are located adjacent to Cen Vus’s Christina Lake operation, creating a geographic and operational fit that is expected to unlock significant production efficiencies. Management estimates that the integration will generate $150 million in annual synergies in the near term, growing to more than $400 million by 2028, through shared infrastructure, combined technical expertise, and streamlined supply‑chain operations.
Shareholders of MEG will receive $27.25 per share, with 75 % paid in cash and 25 % in Cen Vus stock, a structure that reflects the company’s confidence in the long‑term value of the combined entity. The deal will result in the delisting of MEG shares from the Toronto Stock Exchange on November 14, 2025, as the company becomes a wholly owned subsidiary.
"The acquisition of MEG is a unique opportunity to acquire approximately 110,000 barrels per day of production within some of the highest‑quality, longest‑life oil‑sands resources in the basin," said Jon McKenzie, Cen Vus President and CEO. "The assets are a perfect fit next to Christina Lake, and the expected synergies will accelerate our low‑cost base and strengthen our competitive position in Canada’s oil‑sands market."
The transaction follows a competitive bidding process that saw Cen Vus increase its offer to secure the deal, with Strathcona Resources ultimately supporting the acquisition in exchange for oil assets. The deal’s completion reflects Cen Vus’s strategy to grow its low‑cost production while maintaining an investment‑grade credit profile, positioning the company for improved margins and shareholder value over the long term.
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