MEG Energy adjourned the shareholder vote on its proposed acquisition by Cen Vus Energy, originally scheduled for October 30, 2025, after a regulatory inquiry was opened. The vote will now take place on November 6, 2025, once the company can provide the additional information required by the inquiry.
The Cen Vus offer, initially valued at $7.9 billion, has been sweetened to $30 per share and now consists of a 50‑percent cash and 50‑percent stock mix. Strathcona Resources Ltd., which had previously submitted a competing bid, has withdrawn its offer and will now support the improved Cen Vus proposal. In exchange, Cen Vus will sell certain assets to Strathcona for up to $150 million.
The inquiry, opened by the Alberta Securities Commission, focuses on compliance, valuation, and potential antitrust concerns. While no findings have been released, the inquiry requires MEG to disclose additional details about the transaction before the vote can resume.
Financially, MEG reported adjusted funds flow of $125 million ($0.49 per share) for Q2 2025, down from $354 million in Q2 2024. Cen Vus posted net earnings of $1.2 billion in Q2 2025, compared with $2.5 billion in adjusted EBITDA in Q1 2025. The combined company would produce more than 720,000 barrels per day and is expected to realize over $400 million in annual synergies by 2028.
Management statements underscore the importance of regulatory compliance. MEG’s CEO said the company will provide the full disclosure required by the inquiry. Cen Vus’s CEO emphasized the company’s commitment to meeting regulatory standards and creating shareholder value. Strathcona’s CEO noted the company’s support for the enhanced Cen Vus offer.
The consolidation of SAGD assets positions the combined entity as the pre‑eminent SAGD producer in Canada, highlighting the strategic significance of the transaction and the critical role of regulatory approval in large M&A deals.
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