India, Aug. 22 -- Cenovus Energy Inc. (CVE) Friday said it has agreed to acquire MEG Energy Corp. (MEG) in a cash and stock deal valued at $7.9 billion.
As per the deal, Cenovus will acquire MEG for $27.25 per share, to be paid 75% in cash and 25% in Cenovus shares. MEG shareholders can opt to receive either $27.25 in cash or 1.325 Cenovus shares for each MEG share they own.
Cenovus expects the deal to bring in more than $400 million of annual synergies from 2028 onwards, with $150 million to realize in the near-term. The acquisition is expected to immediately add to adjusted funds flow and free funds flow.
Upon combination of the two SAGD oil sands producers, the combined oil sands production will be more than 720,000 barrels per day (b...