By Adriano Marchese

Cenovus Energy has purchased a larger stake of MEG Energy in the open market ahead of the shareholder meeting to approve their merger.

The Canadian energy company has increased its shareholding in the company to 9.8%, it said Wednesday. The agreement to acquire MEG at a cash price of 29.50 Canadian dollars ($21.00) a share must be approved by shareholders.

Last week, along with a sweetened offer for MEG, Cenovus said the Calgary, Alberta-based companies amended their existing standstill agreement to allow Cenovus to buy up to 9.9% of MEG's shares to use toward supporting the combination.

The amendment effectively took rival bidder Strathcona Resources out of the race after it said that decision "is without precedent in the Canadian public markets," and joins a series of anti-competitive actions from MEG's board.

Strathcona had been buying up MEG shares to position itself to oppose Cenovus's buyout bid at the next shareholder meeting.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 15, 2025 06:20 ET (10:20 GMT)

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