On May 15, 2025, Strathcona Resources Ltd. announced a take-over bid to acquire all outstanding shares of MEG Energy Corp. not already owned by Strathcona or its affiliates. The proposed offer comprised 0.62 Strathcona common shares and $4.10 in cash per MEG share, equating to a total consideration of $23.27 per MEG share based on Strathcona’s TSX closing price that day, representing a 9.3% premium to MEG’s closing share price. The cash component was fully backed by a bridge financing commitment, and the offer was not subject to financing conditions. Waterous Energy Fund, Strathcona’s largest shareholder with a 79.6% stake, intended to increase its investment through its WEF III fund by subscribing for 21.4 million Strathcona shares via subscription receipts. The proposed merger would have combined two major SAGD-focused heavy oil producers, positioning Strathcona as Canada’s fifth-largest oil producer and fourth-largest SAGD operator, with projected annual synergies of approximately $175 million. The combined entity was expected to have about 379 million shares outstanding and $1.5 billion in net debt, with Strathcona, MEG shareholders, and WEF III owning 56.5%, 37.8%, and 5.6%, respectively.

Legal advisors to Strathcona included Blake, Cassels & Graydon LLP and Skadden, Arps, Slate, Meagher & Flom LLP, with Scotiabank and TD Securities as financial advisors. MEG was advised by BMO Capital Markets and Burnet, Duckworth & Palmer LLP.

The offer was terminated on October 10, 2025.