Strathcona Counters Cenovus Bid for MEG in Canada's Oil Sands

Researched by Industrial Info Resources (Sugar Land, Texas)--In the battle to secure more of Canada's oil sands, Strathcona Resources Limited (Calgary, Alberta) is far from waving the white flag. Months after MEG Energy Corporation (Calgary) rejected its takeover bid in favor of a rival company, Strathcona is raising its offer for ownership of one of Canada's last publicly traded companies to focus exclusively on exploration and production (E&P) in the oil sands.

Strathcona said its revised offer values MEG at C$30.86 per share, whereas a bid from rival Cenovus Energy (Calgary) in August would value MEG at C$27.79 per share. The new offer, which expires October 20, would give MEG an equity value of about C$7.85 billion (US$5.68 billion), according to calculations made by Reuters.

Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database is tracking:

• about US$2.9 billion worth of active and proposed projects from Strathcona; click here for a list of detailed project reports
• more than US$9 billion worth of proposed projects from MEG; click here for a list
• more than US$18 billion worth from Cenovus; click here for a list

Cenovus announced August 22 it would buy MEG in a cash-and-stock deal, which followed Strathcona's initial takeover bid in May. MEG's board soon expressed support for the offer, after rejecting the earlier Strathcona as inadequate. James McFarland, chairman of MEG Energy, said in August that Cenovus' bid "represents the best strategic alternative."

For more information, see Industrial Info's August 25, 2025, article - Cenovus Snatches Up MEG Energy to Create New Oil Sands Titan, and May 19, 2025, article - Strathcona Ups Oil & Gas Role with MEG Bid, Hardisty Terminal.

Cole Smead, an analyst at Smead Capital Holdings, told Reuters that Strathcona's aggressive moves are unusual in Canada's oil business, but that players are under increasing pressure to grow their footprints in an increasingly competitive global stage.

As of Monday afternoon, MEG and Cenovus had not indicated how they would respond to Strathcona's latest offer. Strathcona already has 14.2% of the current shares outstanding in MEG.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).