Husky Energy Inc. will not extend its $3.3-billion (Can.) offer to acquire MEG Energy Corp. after the October proposal expired Jan. 16 (OGJ Online, Oct. 1, 2018). The company said the minimum tender condition was not met by the deadline and the proposal received insufficient MEG board and shareholder support.
In response, MEG said the rejection of the offer “confirms that the bid did not fully recognize the quality and long-term potential of MEG.”
Husky cited “several negative surprises in the business and economic environment” since initiating the proposal, including departure of the government of Alberta from free market principles, “introducing uncertainty through the imposition of government-mandated production cuts,” and “continued lack of meaningful progress on Canadian oil export pipeline developments.”
All MEG shares that have been tendered to the offer will be returned to shareholders.