%{{tag.tag}} {{articledata.title}} {{moment(articledata.cdate)}} @{{articledata.company.replace(" ","")}} comment %CenovusEnergy (NYSE: $CVE ) is buying rival %MEGEnergy (TSX: $MEG ) in a $7.9 billion cash-and-stock deal. The deal expands Cenovus' footprint in Canada's oil sands region and comes after %StrathconaResources (TSX: $SCR ) made an unsolicited bid for MEG Energy that the company rejected. MEG Energy's management team supports the takeover by Cenovus, saying it is the best strategic alternative for the company. Under terms of the deal, MEG Energy shareholders will receive $27.25 in cash or 1.325 Cenovus common shares for each MEG share they own. The deal is being funded through a mix of 75% cash and 25% Cenovus stock. The deal must be approved by a two-thirds majority vote of MEG Energy shareholders with a vote expected to be held in October of this year. The takeover is also subject to regulatory approval in Canada. The stock of Cenovus has declined 4% this year to trade at $21.17 in Toronto. MEG Energy's stock has gained 15% on the year to trade at $27.56 a share, mostly due to takeover activity.