CK Hutchison-backed Cenovus Energy to acquire MEG in a C$7.9 billion deal

Canadian oil and gas producer Cenovus Energy, backed by CK Hutchison (0001) and the Li Ka-shing family, has agreed to acquire MEG Energy in a cash and stock transaction valued at C$7.9 billion (HK$44.4 billion) including debts. 

Cenovus, already the second-largest upstream oil and natural gas producer in Canada, will acquire all of the issued and outstanding common shares of its peer MEG for C$27.25 per share. 

Each MEG shareholder will receive 75 percent of the consideration in cash and 25 percent in Cenovus shares under the deal.

The acquisition will bring together two leading steam-assisted gravity drainage oil sands producers with combined oil sands production of over 720,000 barrels per day, potentially becoming the biggest producer in Canada

Cenovus expects to realize approximately C$150 million of near-term annual synergies after completion of the deal, growing to over C$400 million per year in 2028 and beyond. 

The transaction has been approved by both companies and is expected to close in the fourth quarter of 2025. 

CK Hutchison (0001) and the Li Ka-shing family’s trust are major shareholders of Cenovus together holding approximately 30 percent of its shares.