Under the terms of the cash and stock transaction, the Calgary oilsands giant will buy MEG Energy’s outstanding shares for $27.25 apiece, 25 per cent of which will be transferred into Cenovus shares. (The Logic)

Talking point: The definitive agreement likely ends a bidding war between Cenovus and Strathcona Resources, a Calgary oil and gas producer that first offered $5.9 billion for MEG in May. Adam Waterous, whose Waterous Energy Fund holds 79.6 per cent of Strathcona Resources shares, which in turn owns a 9.2 per cent stake in MEG, told Bloomberg he would vote against the bid. The deal, if approved, marks Cenovus’s third major acquisition in the last 10 years, after it purchased ConocoPhillips’ Canadian assets for $17.7 billion in 2017, and acquired Husky Energy for $3.8 billion in 2020. The MEG deal adds around 110,000 barrels per day (bpd) of oilsands production, bringing Cenovus’s combined output to around 720,000 bpd.