US EditionMEG Energy Unlikely to Find Another Buyer After Rejecting Strathcona: Expert
- On June 16, 2025, MEG Energy Corp.'s board urged shareholders in Calgary to reject Strathcona Resources' unsolicited $6 billion takeover offer.
- The offer, made on May 30, 2025, proposes 0.62 Strathcona shares plus $4.10 cash per MEG share but has been deemed inadequate by MEG's board and financial advisors.
- MEG highlights its strong independent strategy, anchored by high-quality SAGD operations at Christina Lake, which contains around 5.3 billion barrels of bitumen estimated in place, offering substantial opportunities for long-term expansion.
- Chairman James McFarland criticized the bid as "inadequate by all reasonable measures," cautioning that the merger would subject shareholders to lower-quality assets and a $6 billion overhang stemming from Waterous Energy Fund's 51% stake in the combined entity.
- MEG’s Board has tasked the Special Committee with conducting a strategic review of options that might lead to a better proposal, while the takeover bid will remain available until September 15, 2025.
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MEG Energy’s board urges shareholders to reject Strathcona’s $4.42 billion offer
(Reuters) -Canadian oil producer MEG Energy on Monday urged its shareholders to reject a nearly C$6 billion ($4.42 billion) hostile takeover offer from Strathcona Resources, calling the bid inadequate and not in their best interest. The board also launched a strategic review to explore alternatives that could lead to a better offer than MEG’s current plan to be a standalone company. In May, the Canadian oil and gas producer Strathcona Resources …
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