Cenovus Energy (CVE) Enters Into a Definitive Agreement to Acquire MEG Energy Corp.

Cenovus Energy Inc. (NYSE:CVE) is one of the best cheap strong buy stocks to buy now. On August 22, Cenovus Energy Inc. (NYSE:CVE) announced that it entered into a definitive agreement to acquire MEG Energy Corp. in a cash and stock transaction worth $7.9 billion, which is inclusive of assumed debt.

A fleet of oil tankers at sea, representing the global reach of a crude oil supplier.

Management stated that the terms of the agreement dictate that Cenovus Energy Inc. (NYSE:CVE) would acquire “all of the issued and outstanding common shares of MEG for $27.25 per share, which will be paid 75% in cash and 25% in Cenovus common shares.”

Cenovus Energy Inc. (NYSE:CVE) further revealed that each shareholder of MEG Energy Corp. would be given the option to “elect to receive, for each MEG common share (i) $27.25 in cash; or (ii) 1.325 Cenovus common shares, subject to pro-ration based on a maximum amount of $5.2 billion in cash and a maximum of 84.3 million Cenovus common shares.”

Based in Canada, Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company that provides gas and oil. Its operations are divided into the Upstream, Downstream, and Corporate and Eliminations segments.

The Upstream segment includes oil sands, conventional, and offshore operations, while the Downstream segment manages the US and Canadian refining.

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Disclosure: None. This article is originally published at Insider Monkey.