Cenovus to Acquire MEG Energy in $5.7 Billion Deal

Paul, Weiss is advising Cenovus Energy Inc. in its acquisition of MEG Energy Corp., a cash-and-stock transaction valued at $5.67 billion (C$7.9 billion), including assumed debt. The deal reinforces Cenovus’ position as the preeminent steam-assisted gravity drainage oil sands producer.

Under the terms of the agreement, Cenovus will acquire all of the issued and outstanding common shares of MEG for $27.25 per share, paid 75% in cash and 25% in Cenovus common shares. The deal is expected to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals.

The Paul, Weiss team is led by corporate partner Adam Givertz and includes partner Christopher Cummings and counsel Stephen Centa, and antitrust partner Yuni Sobel.