Cenovus Energy Strikes $7.9 Billion Deal To Acquire MEG, Creating Oil Sands Powerhouse

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Cenovus Energy Inc. (NYSE:CVE) said Thursday it will acquire MEG Energy Corp. (OTC:MEGEF) in a cash-and-stock deal valued at $7.9 billion, including debt, creating one of the largest players in Canada’s oil sands sector.

Cenovus will pay MEG shareholders $27.25 per share, with 75% in cash and 25% in Cenovus stock. Investors can choose an all-cash or all-stock payout, subject to caps on the total amount of each available. On a pro-rated basis, holders will receive about $20.44 in cash and 0.33 Cenovus shares per MEG Energy share.