Strathcona Resources Ltd., led by Canadian oil tycoon Adam Waterous, has announced a hostile takeover bid for MEG Energy Corp., valued at C$5.93 billion. The offer, which includes a mix of stock and cash, aims to create one of Canada's largest oil sands companies by combining two major thermal oil sands operators. The bid, initially proposed to MEG's board on April 28 and rejected on May 13, offers 0.62 of a Strathcona share and $4.10 in cash per MEG share, totaling $23.27 per share. This represents a 9.3% premium over MEG's last closing price before the announcement. Strathcona, holding a 9.2% stake in MEG, plans to file the formal offer within the next two weeks and remains open to further discussions with MEG's board. The company anticipates $175 million in annual cost savings from the merger, including reductions in operational, capital, and interest expenses. Strathcona's main stakeholder, Waterous Energy Fund, which owns nearly 80% of Strathcona's shares, plans to increase its investment if the deal proceeds, resulting in MEG shareholders owning 37.8% of the combined company. Some MEG Energy shareholders have expressed dissatisfaction with the offer, suggesting it may not be compelling enough. Strathcona's recent sale of its Montney assets for about $2.84 billion and acquisition of the Hardisty Rail Terminal are part of its strategy to focus on core heavy oil operations.