After considering takeover offers from Strathcona Resources and Cenovus Energy, MEG Energy has decided to be acquired by Cenovus.
“[Following a review of all available options,] the special committee and the MEG Board unanimously concluded that the proposed [$7.9-billion] transaction with Cenovus represents the best strategic alternative,” MEG chairman James McFarland said in a news release.
MEG shareholders are currently scheduled to vote on the acquisition at a special meeting in October.
The energy giant didn’t mince words when it came to its thoughts on MEG’s decision to go with Cenovus’ offer.
“Hats off to Cenovus for preying on a weak board which owns almost no shares in the business and clearly adopted an ‘Anybody But Strathcona’ view as a result of Strathcona putting the company in play,” Adam Waterous, Strathcona’s executive chairman, said in an emailed statement to CBC News.
“I am sure Cenovus felt that negotiating with MEG’s board was like taking candy from a baby.”
Waterous added that the company will continue engaging with MEG shareholders ahead of their offer’s Sept. 15 deadline.
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