The Cenovus Christina Lake oil sands facility southeast of Fort McMurray, Alta. After buying MEG, Cenovus's production will grow by 110,000 barrels a day.AMBER BRACKEN/The Canadian Press
Oilsands giant Cenovus Energy Inc. CVE-T has completed its takeover of MEG Energy Corp.
The two companies had neighbouring properties in the oil sands at Christina Lake, south of Fort McMurray, Alta.
With the purchase, Cenovus gets another 110,000 barrels a day of production from what had been MEG’s flagship operation.
The deal was worth more than $8.6-billion in cash, shares and assumed MEG debt.
Cenovus under no pressure to sell assets post-MEG Energy deal, CEO says
MEG shares are expected to be delisted from the TSX on Friday.
The acquisition’s closing marks the end of a bitter saga that saw Cenovus face off against rival bidder Strathcona Resources Ltd. SCR-T, which ultimately supported a sweetened Cenovus offer.
“The addition of MEG assets and people will have an immediate positive impact on Cenovus,” said Cenovus CEO Jon McKenzie.
“The strategic fit is exceptional, the assets are of the highest quality and the synergies we have identified will create significant value over both the short and long term.”