Cenovus Energy agreed to acquire MEG Energy in a cash-and-stock transaction valued at about C$7.9 billion, including the assumption of debt. The offer gives MEG holders C$27.25 a share, payable 75 percent in cash and 25 percent in Cenovus stock, or the option of all-cash or all-share consideration subject to proration. The equity component implies a valuation of roughly C$6.93 billion and represents a premium of almost 29 percent to MEG’s price before a competing bid emerged in May. The combination will create one of Canada’s largest oil-sands producers, uniting adjacent assets at the Christina Lake field and lifting combined output to more than 720,000 barrels a day. Cenovus expects annual cost and operating synergies of about C$150 million initially, rising above C$400 million by 2028, and forecasts it can lift MEG’s production capacity to more than 150,000 barrels a day within the same period. Cenovus is funding the cash portion through a C$2.7 billion term loan and a C$2.5 billion bridge facility, and projects pro-forma net debt of less than one times adjusted funds flow. The boards of both companies have unanimously approved the deal, which is scheduled to close in the fourth quarter of 2025 pending regulatory and MEG shareholder approvals. The offer tops Strathcona Resources’ earlier C$6 billion hostile bid, although Strathcona said it will continue to lobby MEG investors ahead of a 15 September tender deadline.