Calgary, Alberta – Cenovus Energy is in advanced discussions with several Indigenous groups, including Chipewyan Prairie First Nation and Heart Lake First Nation, to jointly acquire a C$2 billion stake in MEG Energy. The potential deal comes just weeks after MEG rebuffed a C$6 billion hostile takeover bid from Strathcona Resources.
According to sources familiar with the talks, the proposed partnership could involve federal and provincial government backing—both in financing and in policy support—making Cenovus a potential “white knight” savior for MEG against aggressive acquisition attempts.
Economic and Strategic Impact
Industry analysts suggest the move could strengthen Cenovus’s presence in Alberta’s oil sands while advancing reconciliation and economic collaboration with Indigenous communities. Such a joint venture would give First Nations a stronger stake in Canada’s energy sector, potentially generating long-term revenue streams for their communities.
The announcement also had an immediate effect on the market—MEG Energy shares jumped over 2% following early reports of the negotiations.
While no final agreement has been signed, both Cenovus and participating Indigenous groups are reportedly aiming to finalize the framework in the coming months. If successful, the partnership could reshape the competitive landscape of Canada’s oil sands industry.