May 16 (Reuters) - Canadian oil and gas producer

Strathcona said late Thursday it plans to launch a

C$5.93 billion ($4.25 billion) takeover bid for peer MEG Energy ( MEGEF )

, aiming to create the country's fifth-largest oil

producer.

Strathcona will offer to buy all of the issued and

outstanding common shares of MEG Energy ( MEGEF ) for 0.62 of a common

share of Strathcona and C$4.10 in cash per MEG Share.

The offer represents a total consideration of C$23.27 per

MEG share, Strathcona said, which is a premium of 9.3% to MEG

Energy's ( MEGEF ) last closing price. A Reuters calculation shows that

will value MEG at about C$5.93 billion.

After completion of the offer, Strathcona expects to have

about $1.5 billion in net debt.

On April 28, the company made a formal proposal to MEG

Energy's ( MEGEF ) board of directors. But on May 13, 2025, the MEG Board

said it was not interested in pursuing a combination with

Strathcona.

($1 = 1.3944 Canadian dollars)