MEG Energy Corp. shareholders have given the green light to Cenovus Energy Inc.’s $8.6 billion takeover bid, marking the end of a months-long debacle in Alberta's energy sector.More than 86% of votes were cast in favour of the deal, MEG chairman James McFarland confirmed on Thursday.The deal also passed a minority approval test, with 83% of votes cast — excluding shares controlled by MEG’s largest shareholder Strathcona Resources Ltd. — supporting the transaction.The decisive vote follows a months-long fight which started in May when Strathcona, led by billionaire CEO Adam Waterous, launched an unsolicited, hostile bid for MEG valued at $5.93 billion.MEG’s board quickly rejected the offer, calling it inadequate and initiating a strategic review to explore alternatives.By August, MEG had agreed to a friendly acquisition by Cenovus Energy in a $7.9-billion cash-and-stock deal.In response, Strathcona increased its stake in MEG to 14.2% on Aug. 28 and vowed to vote against the Cenovus transaction. Strathcona later sweetened its offer to $30.86 per share, topping the initial $27.70 valuation of the Cenovus deal..Cenovus stock soars after surprise earnings beat one day after layoffs.MEG’s board urged shareholders to reject Strathcona’s bid, backing Cenovus instead, with the company’s CEO Jon McKenzie saying the offer is “fair and final.”The bidding war intensified in October, when Cenovus raised its offer to approximately C$29.80 per share, and MEG delayed a shareholder vote that was originally set for Oct. 9.Strathcona eventually withdrew its bid, accusing MEG’s board of “anti-competitive actions” for allowing Cenovus to acquire additional shares to influence the vote.A twist came in late Oct., when Cenovus and Strathcona struck a side agreement under which Strathcona would support the Cenovus-MEG deal in exchange for acquiring certain heavy oil assets and land in Alberta and Saskatchewan.Last week, Cenovus again increased its offer, and Strathcona agreed to vote its 14.2% MEG stake in favour of the deal and to buy the Vawn thermal heavy oil operation in Saskatchewan from Cenovus, along with some undeveloped properties in the western part of the province and in Alberta, for up to $150 million.That side deal was confirmed to be the main cause of another delay in shareholder voting, with McKenzie saying a regulatory inquiry was related to a complaint raised by a former MEG employee who held approximately 4,000 shares in the company, but which did not eventually affect the transaction, with the final vote Thursday confirming Cenovus’s acquisition.Currently, Cenovus and MEG operate side-by-side oil sands properties at Christina Lake in northern Alberta and both companies have repeatedly cited the cost-savings and efficiencies that would result from joining forces.The deal is expected to add 110,000 barrels of daily oil sands production to Cenovus's portfolio, bringing it to 720,000 boe/d, with Cenovus saying its output could grow to 850,000 boe/d by 2028.
