MEG meeting on Cenovus deal paused to address ‘regulatory inquiry’

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CALGARY — The chairman of MEG Energy Corp. has paused a shareholder meeting on a proposed takeover by Cenovus Energy Inc. to address an unspecified regulatory matter.

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The meeting had been set for 9 a.m. local time Thursday, but is now to resume at 2 p.m.

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“My role as chair is a little bit more difficult this morning,” James McFarland told the meeting, being held in person and over webcast.

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“I’ve made a decision to recess the meeting … in order to give us time to address a regulatory inquiry that came in late yesterday evening.”

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McFarland did not elaborate on the nature of the inquiry.

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It’s the latest twist in a bitter months-long takeover fight that pitted oilsands giant Cenovus against smaller rival bidder Strathcona Resources Ltd.

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Strathcona dropped its all-stock bid earlier this month and on Monday pledged it would vote its 14 per cent stake in MEG in favour of a sweetened offer from Cenovus.

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Cenovus and MEG have side-by-side oilsands properties at Christina Lake, south of Fort McMurray, Alta., while Strathcona also has steam-driven operations in the region.

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The sweetened offer, made up of half cash and half stock, is worth $30 per share based on Cenovus’ closing stock price on Friday. Earlier, it had offered $29.50 in cash or 1.240 of a Cenovus share, worth $29.65 as of Friday.

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The saga began in April when Strathcona approached the MEG board with a cash-and-stock takeover bid. Strathcona was rebuffed and took the offer directly to MEG shareholders weeks later.

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In June, MEG’s board called the bid “opportunistic” and urged shareholders to reject it as it launched a review to find a superior offer. Strathcona executive chairman Adam Waterous had accused MEG of refusing to engage and taking an “anyone but Strathcona” stance.

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In August, MEG announced its board had accepted the first friendly takeover offer from Cenovus. The following month, Strathcona amended its offer to be based entirely on stock, arguing that structure would give investors greater opportunity to benefit from future growth.

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Cenovus upped its bid and offered a greater equity share in early October, and the companies agreed to allow Cenovus to buy up to 9.9 per cent of the target company’s stock ahead of the shareholder vote.

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Strathcona abandoned its bid a few days later, saying the conditions of its offer could no longer be satisfied, while some MEG shareholders decried what they saw as unfair tactics to lock up the deal with Cenovus. Some wrote to the Alberta Securities Commission asking it to investigate.

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This report by The Canadian Press was first published Oct. 30, 2025.

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Companies in this story: (TSX:MEG) (TSX:SCR) (TSX:CVE)

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