MEG Energy Snubs Strathcona, Accepts Cenovus’ $7.9B Takeover Offer

What’s Happening?

After considering takeover offers from Strathcona Resources and Cenovus Energy, MEG Energy has decided to be acquired by Cenovus.

“[Following a review of all available options,] the special committee and the MEG Board unanimously concluded that the proposed [$7.9-billion] transaction with Cenovus represents the best strategic alternative,” MEG chairman James McFarland said in a news release.

MEG shareholders are currently scheduled to vote on the acquisition at a special meeting in October.

Strathcona’s Reaction

The energy giant didn’t mince words when it came to its thoughts on MEG’s decision to go with Cenovus’ offer.

“Hats off to Cenovus for preying on a weak board which owns almost no shares in the business and clearly adopted an ‘Anybody But Strathcona’ view as a result of Strathcona putting the company in play,” Adam Waterous, Strathcona’s executive chairman, said in an emailed statement to CBC News.

“I am sure Cenovus felt that negotiating with MEG’s board was like taking candy from a baby.”

Waterous added that the company will continue engaging with MEG shareholders ahead of their offer’s Sept. 15 deadline.

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If Cenovus’ acquisition of MEG gets the green light, here are a few things that non-unionized employees in Canada need to be aware of.

Who’s on the Hook for Severance Post-Acquisition?

In Canada, the “seller” of the business is responsible for providing proper compensation to staff who lose their job.

📺 WATCH: Rights Non-Unionized Workers Have When a Business is Sold

If you receive a new employment contract following Cenovus’ acquisition of MEG, and you have a good reason for why you don’t want to accept it (i.e. different hours or pay), contact an experienced employment lawyer at Samfiru Tumarkin LLP. We’ll help you secure the severance pay you’re entitled to.

Even without a good reason you can still get severance, but it’s very likely that you will only receive your minimum entitlements.

LEARN MORE
• Sale of Business in Ontario: Rights to Severance
• Rights to Severance in Alberta When Your Employer Sells the Business
• Employer Sold the Business in BC? Know Your Rights to Severance

Can Major Job Changes be Made Post-Acquisition?

In Canada, non-unionized employees at MEG don’t have to accept substantial changes to their job following the acquisition by Cenovus.

Major modifications, such as a demotion, longer shifts, or reduced pay, are illegal.

When significant adjustments are made to the terms of your employment without your consent, there’s a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to quit your job and pursue full severance pay.

If you believe you’ve been constructively dismissed, don’t resign before contacting our firm.

ADDITIONAL RESOURCES
• Can My Employer Make Changes to My Job in Ontario?
• Job Changes in Alberta: What Employees Need to Know
• Changes to Your Employment in BC: Your Rights

New Employment Contract?

If you work for MEG, and you receive a new employment contract from Cenovus following the acquisition, take the time to carefully review it before signing it.

In many cases, these agreements take away key protections that would otherwise be available to non-unionized employees, including:

• Eliminating past service: The new contract might attempt to reduce or eliminate your years of service with your previous employer. Don’t sacrifice your seniority. Length of service is a key factor when determining how much severance pay you are entitled to.
• Reducing severance pay: Some employers try to use a termination clause to reduce your severance entitlements to the bare minimum. Instead of months of pay, you might only receive a few weeks’ pay if you are fired without cause or let go.
• Ability to make changes: The new agreement might attempt to add a clause that gives them the right to change aspects of your job (i.e. hours or pay) without your permission or lay you off without penalty.

Employers in Canada can’t legally force non-unionized workers to sign a new employment contract immediately or a few days after receiving it.

SEE ALSO
• Starting a New Job? How Employment Contracts Could Limit Your Rights
• Employment Law Show: 5 Things About Employment Contracts
• Employment Law Show: Things to Avoid Before Seeking Legal Counsel

Workplace Issue? Get Help Now

Contact Samfiru Tumarkin LLP: 1-855-821-5900 or request a consultation online.

Our employment lawyers in Ontario, Alberta, and British Columbia (BC) have helped tens of thousands of non-unionized individuals successfully resolve various workplace issues.

• 👥 Over 50,000 clients helped across Canada
• 💰 Secured millions in severance and settlements
• ⚖️ No win, no fee — you don’t pay unless we win (Conditions apply. Not all cases qualify.)
• ⭐ 3,000 5-star Google reviews across Canada (4.7 average)
• 🏆 Recognized as one of Canada’s Best Law Firms by The Globe and Mail

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.