Canada's Strathcona buys more MEG Energy shares, to oppose Cenovus deal (updated)

Strathcona Resources

04/09/2025 23:31

Adds details and background in paragraphs 2-8

Sept 4 (Reuters) - Canadian oil and gas producer Strathcona Resources SCR.TO said on Thursday it has bought additional 6.04 million common shares of rival MEG Energy MEG.TO for about C$172.7 million ($124.99 million).

Strathcona now owns or controls about 14.2% of MEG's outstanding shares, strengthening its position as a significant minority shareholder in MEG.

On Tuesday, the company had bought additional 6.66 million MEG shares for about C$190.8 million and held about 11.8% of the MEG shares.

The highest price paid for the MEG shares purchased by Strathcona on Thursday was C$28.78 per share.

Strathcona said it intends to vote against the resolution to approve the acquisition of MEG by Cenovus Energy. MEG has set October 9 for a shareholder vote on its proposed deal with Cenovus.

In August, Cenovus Energy agreed to acquire MEG in a C$7.9 billion cash-and-stock deal, after MEG's board rejected Strathcona's lower C$6 billion takeover bid in June.

While MEG's board has approved the offer, it needs support from at least two-thirds of investors. The deal is expected to close early in the fourth quarter of 2025.

($1 = 1.3817 Canadian dollars)

 (Reporting by Pooja Menon in Bengaluru; Editing by Alan Barona and Arun Koyyur)

 ((Pooja.Menon@thomsonreuters.com))